What Drives Shadow Banking in the New EU Member States? Empirical Panel Cointegration Approach
What Drives Shadow Banking in the New EU Member States? Empirical Panel Cointegration Approach
Author(s): Jordan Kjosevski, Mihail Petkovski, Aleksandar StojkovSubject(s): Transformation Period (1990 - 2010), Present Times (2010 - today), EU-Accession / EU-DEvelopment, Financial Markets
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: shadow banking; procyclicality; panel cointegration;
Summary/Abstract: The central goal of this paper is to analyse factors that determine the growth of shadow banking in 11 new EU member states from Central and Eastern Europe, using annual data for the period 1999-2019. As the levels of economic and financial development vary considerably across these countries, we split them into three more homogenous groups: the Balkan, Baltic, and Višegrad countries. We then applied dynamic and fully modified ordinary least squares to estimate the relationship between the variables. The results of our study indicate that the insurance and banking sectors as well as economic growth have a positive effect on the shadow banking sector across all groups. We also found that the global financial crisis (GFC) of 2007-2008 had a diverse impact on the selected groups of countries.
Journal: Ekonomický časopis
- Issue Year: 69/2021
- Issue No: 08
- Page Range: 812-832
- Page Count: 21
- Language: English
