The Determinants of Cross-Border Lending in the Euro Zone

Sylvia Heuchemer, Stefanie Kleimeier and Harald Sander
Additional contact information
Sylvia Heuchemer: Cologne University of Applied Sciences Claudiusstr.1, Köln 50678, Germany

Comparative Economic Studies, 2009, vol. 51, issue 4, 467-499

Abstract: We investigate the determinants of cross-border lending in the euro zone with a focus on the potentially limiting role of cultural and political factors. Employing a unique data set of European cross-border loans, the study uses various specifications of gravity models, which are subsequently augmented by societal proxies. Although trade-theoretic and financial development reasoning can explain part of the surge in cross-border lending, we demonstrate that distance and borders still matter. Moreover, we identify cultural differences and different legal family origin as important barriers to further integration in the euro zone.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.palgrave-journals.com/ces/journal/v51/n4/pdf/ces20099a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/ces/journal/v51/n4/full/ces20099a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:compes:v:51:y:2009:i:4:p:467-499

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().