Economics at your fingertips  

Determinants of Currency Substitution in Southeast European Countries

Pepić Marina (), Marinković Srđan (), Radović Ognjen () and Malović Marko ()
Additional contact information
Pepić Marina: National bank of Serbia, Belgrade, Serbia
Radović Ognjen: Faculty of Economics, University of Niš, Serbia
Malović Marko: Institute of Economic Sciences, Belgrade, Serbia

Economic Themes, 2015, vol. 53, issue 2, 162-184

Abstract: Currency substitution is widespread in less developed countries. Since it increases financial vulnerability and limits the effectiveness of monetary policy, it is often in the focus of scientists and experts. In this paper, we analyze the importance of euroization determinants in Serbia and neighboring countries - Albania, Bosnia and Herzegovina, FYR Macedonia, Romania and Croatia for the period 2003-2014. We examine the impact of domestic inflation, nominal exchange rate of the domestic currency against the euro, interest rate spread on domestic and foreign currency, foreign currency inflow in the form of foreign direct investments and exports, as well as the euroization of banks’financial resources on the degree of loan euroization. The results obtained by multiple regression panel methods confirm the statistical significance and assumed direction of the influence of all analyzed variables except inflation and current account balance.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (text/html)

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:

DOI: 10.1515/ethemes-2015-0010

Access Statistics for this article

Economic Themes is currently edited by Marija Radosavljević

More articles in Economic Themes from Sciendo
Bibliographic data for series maintained by Peter Golla ().

Page updated 2021-05-07
Handle: RePEc:vrs:ecothe:v:53:y:2015:i:2:p:162-184:n:2