Demand and Supply Drivers of Foreign Currency Loans in CEECs: A Meta-Analysis

Posted: 17 Oct 2015

See all articles by Jesus Crespo Cuaresma

Jesus Crespo Cuaresma

Vienna University of Economics and Business

Jarko Fidrmuc

Zeppelin University Friedrichshafen

Mariya Stankeva Hake

Oesterreichische Nationalbank (OeNB)

Abstract

We present a meta-analysis of the determinants of foreign currency loans in Central and Eastern Europe. We base our inferences on the results of 21 studies that provide around 800 estimated coefficients for seven determinants of foreign currency loan demand. Our results indicate that, on average, supply factors (foreign currency deposits and the minimum variance portfolio ratio) appear to play a more significant role than demand factors (interest rate differentials) of foreign currency loans. Moreover, we show that the estimates reported in the literature tend to be influenced by selected study characteristics such as the econometric methodology and their regional focus.

Keywords: Foreign currency loans, Meta-analysis, Publication bias, Meta-regression, Bayesian model averaging

JEL Classification: E51, F31, C11

Suggested Citation

Crespo Cuaresma, Jesus and Fidrmuc, Jarko and Stankeva Hake, Mariya, Demand and Supply Drivers of Foreign Currency Loans in CEECs: A Meta-Analysis. Economic Systems, Vol. 38, No. 1, 2014, Available at SSRN: https://ssrn.com/abstract=2674575

Jesus Crespo Cuaresma

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Jarko Fidrmuc (Contact Author)

Zeppelin University Friedrichshafen ( email )

Am Seemooser Horn 20
Friedrichshafen, 88045
Germany

Mariya Stankeva Hake

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna,
1010 Vienna, A-1011
Austria

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