Economics at your fingertips  

Do the Drivers of Loan Dollarization Differ between CESEE and Latin America? A Meta-Analysis

Mariya Hake (), Fernando Lopez-Vicente () and Luis Molina Sánchez ()
Additional contact information
Mariya Hake: Oesterreichische Nationalbank, Foreign Research Division

Authors registered in the RePEc Author Service: Fernando Salvador López Vicente ()

Focus on European Economic Integration, 2014, issue 1, 8-35

Abstract: In this paper we compare the determinants of loan dollarization in two emerging market regions, namely Central, Eastern and Southeastern Europe (CESEE) and Latin America, through a meta-analysis of 32 studies that provide around 1,200 estimated coefficients for six drivers of foreign currency lending. As a common pattern, we find macroeconomic instability (as expressed by inflation volatility) and banks’ funding in foreign currency to play a significant role in explaining loan dollarization in both regions. In contrast, the interest rate differential appears to be a key determinant only in Latin America, while the positive impact of exchange rate volatility on dollarization implies a more prominent role for supply factors in the CESEE region. While the robustness of the results has been verified, our meta-analysis shows that estimates reported in the literature tend to be influenced by study characteristics such as the methodology applied and the data used.

Keywords: foreign currency loans; CESEE; Latin America; metaregression; random effects maximum likelihood (search for similar items in EconPapers)
JEL-codes: C5 E52 F31 O57 P20 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) ... _q1_studies_hake.pdf (application/pdf)

Related works:
Working Paper: Do the drivers of loan dollarisation differ between cesee and Latin America? a meta-analysis (2014) Downloads
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:

Ordering information: This journal article can be ordered from
Oesterreichische Nationalbank, Documentation Management and Communications Services, Otto-Wagner Platz 3, A-1090 Vienna, Austria

Access Statistics for this article

Focus on European Economic Integration is currently edited by Doris Ritzberger-Gruenwald and Helene Schuberth

More articles in Focus on European Economic Integration from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Markus Eller ().

Page updated 2019-05-16
Handle: RePEc:onb:oenbfi:y:2014:i:1:b:1