THE DETERMINANTS OF CURRENCY EUROIZATION IN THE BALKANS

Anes Kadic (), Abdul Wahab Aidoo () and Ognjen Ridic ()
Additional contact information
Anes Kadic: International University of Sarajevo, Bosnia and Herzegovina
Abdul Wahab Aidoo: International University of Sarajevo, Bosnia and Herzegovina
Ognjen Ridic: International University of Sarajevo, Bosnia and Herzegovina

Economic Review: Journal of Economics and Business, 2022, vol. 20, issue 2, 41-52

Abstract: The study aims to explore the euroization phenomenon in the Balkans, or more precisely, the main determinants of currency euroization in the selected seven Balkan countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, North Macedonia, Romania, and Serbia) between 2000 and 2019. Currency euroization is proxied by two variables: foreign currency deposits and foreign currency denominated liabilities to total liabilities. This study has altogether showed that the rates of deposit and liabilities euroization had stayed persistent over a period of 20 years, with very small variations, even during the period of the 2008 crisis and its aftermath. The results of panel data analysis have showed that deposit euroization is influenced by consumer price index, real interest rate and trade openness. For liability euroization, trade openness and real effective exchange rate have proved to be statically significant variables, but with negative and positive effect respectively.

Keywords: Euroization; Balkan economies; foreign currency deposits; foreign currency liabilities; panel data analysis (search for similar items in EconPapers)
JEL-codes: F21 F36 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ef.untz.ba/wp-content/uploads/2023/05/4_ER_DOI_pp.41_52.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tuz:journl:v:20:y:2022:i:2:p:41-52

Access Statistics for this article

Economic Review: Journal of Economics and Business is currently edited by Zijad Dzafic

More articles in Economic Review: Journal of Economics and Business from University of Tuzla, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Senad Celikovic ().