Advanced Search
MyIDEAS: Login to save this paper or follow this series

Dollarization, Inflation Volatility and Underdeveloped Financial Markets in Transition Economies

Contents:

Author Info

  • Piontkovsky Ruslan

    ()

Registered author(s):

    Abstract

    The paper analyzes the phenomenon of dollarization in a sample of transition economies: Ukraine, Russia, Poland, Czech Republic, Romania, Slovenia, Croatia, Latvia, and Lithuania. Using the Thomas' portfolio balance model, the author tests how the degree of dollarization depends on the relative returns on financial assets, inflation volatility, and financial market development. The main conclusion from the analysis is that relative returns on assets (bank deposits in the domestic currency relative to deposits in foreign currencies) and inflation volatility have a significant effect on dollarization. The effect of financial market development is also captured, albeit indirectly, as dollarization is found to be dependent on the country’s balance of trade (the inflow of foreign currency).

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: https://eerc.ru/default/download/creater/working_papers/file/6cea87967a761638cfb574148c0830b182e3c9b4.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 03-02e.

    as in new window
    Length: 28 pages
    Date of creation: 21 May 2003
    Date of revision:
    Handle: RePEc:eer:wpalle:03-02e

    Contact details of provider:
    Postal: EERC Research Network, Russia and CIS, 1, Mazepy Str., suite 202, Kyiv, 01010 Ukraine
    Phone: +38(044)492-8012
    Fax: +1(202)478-1968
    Web page: http://www.eerc.ru

    Order Information:
    Postal: EERC Research Network, Russia and CIS, 1, Mazepy Str., suite 202, Kyiv, 01010 Ukraine
    Email:
    Web: https://eerc.ru/paper

    Related research

    Keywords: Ukraine; Russia; dollarization; asset substitution; currency substitution; transition economies; portfolio optimization; inflation volatility;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Marina Tkalec, 2011. "The Dynamics of Deposit Euroization in European Post-transition Countries: Evidence from Threshold VAR," Working Papers, The Institute of Economics, Zagreb 1102, The Institute of Economics, Zagreb.
    2. Marina Tkalec, 2013. "Monetary Determinants of Deposit Euroization in European Post-Transition Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(1), pages 89-101, March.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eer:wpalle:03-02e. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anton Pashchenko).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.