“CROSS-BORDER BANK FLOWS TO EMERGING MARKETS”: BUNDESBANK DISCUSSION PAPER

July 30, 2010 at 8:59 am | Posted in Economics, Financial, Germany, Globalization, History, Research | Leave a comment

spin-globe.gif

books-globe.gif

globe-purple.gif

history.gif

world.gif

compass.gif

loudspeaker.gif

globeinmoney.jpg

Bundesbank Discussion Paper

Newsletter Forschungszentrum Bundesbank

Fri 7/30/10

The Bundesbank Research Centre has released a new

Discussion Paper (No 17/2010 Series 1).

Author/s:

Sabine Herrmann
Dubravko Mihaljek

Title:

The determinants of cross-border bank flows to emerging markets – new empirical evidence on the spread of financial crises

Abstract:

This paper studies the nature of spillover effects in bank lending flows from advanced to the emerging market economies and identifies specific channels through which such effects occur. Based on a gravity model we examine a panel data set on cross-border bank flows from 17 advanced to 28 emerging market economies in Asia, Latin America and central and eastern Europe from 1993 to 2008. The empirical analysis suggests that global as well as country specific factors are significant determinants of cross-border bank flows.

Greater global risk aversion and expected financial market volatility seem to have been the most important factors behind the decrease in cross-border bank flows during the crisis of 2007-08. The withdraw of cross-border loans from central and eastern Europe was more limited compared to Asia and Latin America, in large measure because of the higher degree of financial and monetary integration in Europe, and relatively sound banking systems in the region. These results are robust to various specification, sub-samples and econometric methodologies.

http://vo5555.newsletter.bundesbank.de/servlet/rd?l=Diskussionspapiere-JOKA-PJN1-M7DJ-ONL3-NWSL144

Deutsche Bundesbank
Forschungszentrum
Research Centre
Wilhelm-Epstein-Strasse 14
60431 Frankfurt am Main
Germany

Contact:
presse-information@bundesbank.de

Bundesbank Discussion Paper

The determinants of cross-border bank flows to emerging markets – new empirical evidence on the spread of financial crises

Newsletter Forschungszentrum Bundesbank

http://vo5555.newsletter.bundesbank.de/servlet/rd?l=Diskussionspapiere-JOKA-PJN1-M7DJ-ONL3-NWSL144

Deutsche Bundesbank

Forschungszentrum

Research Centre

Wilhelm-Epstein-Strasse 14

60431 Frankfurt am Main

Germany

presse-information@bundesbank.de

Fri 7/30/10

banknotes.jpg

TrackBack URI


Entries and comments feeds.

%d bloggers like this: