Showing 1 - 10 of 46
While the impact of exchange rate changes on economic growth has long been an issue of key importance in international macroeconomics, it has received renewed attention in recent years, owing to weaker growth rates and the debate on currency wars. However, in spite of its prevalence in the...
Persistent link: https://www.econbiz.de/10010352028
We develop a theoretical model of international trade pricing in which individual exporters and importers bargain over the transaction price and exposure to exchange rate fluctuations. We find that the choice of price and invoicing currency reflects the full market structure, including the...
Persistent link: https://www.econbiz.de/10010294944
The development of financial markets in the emerging market economies of Eastern Europe is considered one of the crucial elements of the overall reform process. Under central planning, banks used to be passive recipients of orders from the planners; they did not engage in any credit screening...
Persistent link: https://www.econbiz.de/10010313127
The German banking market is notorious for its low degree of market penetration by foreign financial institutions, suggesting that markets serviced by domestic and foreign banks are segmented. This paper employs a number of tests to determine whether activities of domestic and foreign banks are...
Persistent link: https://www.econbiz.de/10010260426
One key focus of the on-going debate on the integration of international financial markets have been measures to lengthen the maturity of foreign debt. Short-term debt is typically considered to be volatile and thus a potential trigger of currency crises. In contrast to the vivid policy debate...
Persistent link: https://www.econbiz.de/10010260432
The Eastern enlargement of the European Union (EU) is likely to give a further boost to trade and capital flows, yet empirical evidence on the possible magnitudes is still scarce. This paper uses four different datasets to estimate the determinants of international asset holdings and trade...
Persistent link: https://www.econbiz.de/10010260439
The introduction of the euro is expected to increase capital mobility in Euroland. While, as in the US, a common monetary policy is now performed, institutional structures are inherently more heterogenous. This paper argues that experience of the US with financial market integration can...
Persistent link: https://www.econbiz.de/10010260440
Information costs and regulatory barriers are the main distinguishing features of international financial markets as compared to national financial markets. This paper presents a simple model of the impact of these factors on banks' cross-border activities and provides empirical evidence. Our...
Persistent link: https://www.econbiz.de/10010260448
Pecking order models of international finance suggest that countries should become less reliant on international bank lending as they develop. Reduced information costs are one of the factors behind this trend towards disintermediation. This paper presents a simple model on the choice between...
Persistent link: https://www.econbiz.de/10010260449
Globalization has affected the integration of markets through many different channels, including movements of factors and trade in goods. From a theoretical point of view, the interaction between the different channels of integration can take different forms. The aim of this paper is to analyze...
Persistent link: https://www.econbiz.de/10010260456