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Foreign Bank and Financial Development: Factors Affecting Foreign Bank Effects in CEE Countries
Hou, Jiale ; Vokoun, Marek (advisor) ; Chondrogiannis, Ilias (referee) ; Jeřábek, Petr (referee)
This dissertation analyses country-level data for 12 CEE countries from 2000 to 2021 using the Dynamic GMM methodology. The aim of this article is to investigate the effect of foreign bank entry on four dimensions of financial development, which are financial stability, efficiency, depth and access. Furthermore, the article will examine the factors affecting foreign bank effect, including the economic and institutional level of domestic banks and the extent and stage of foreign bank entry. The result shows that foreign bank penetration has a positive influence on financial stability and efficiency, while it has a negative effect on financial depth and access. In general, a high level of economic development and a stringent and well-developed institutional environment is favourable for foreign banks to exhibit a positive influence on financial development. And the bad influence of foreign banks on financial depth and access is diminishing over time. Results regarding the relative importance of foreign banks indicate a mixed conclusion. Overall, this dissertation supplements empirical evidence on the link between foreign banks and financial development in CEE regions and could provide more insights to policymakers.
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The Impact of Financial Development on Innovation: A Comparative Study of Central and Eastern European Countries and Western European Countries
Liu, Yuhan ; Fiřtová, Magdalena (advisor) ; Ramesh, Sangaralingam (referee) ; Jeřábek, Petr (referee)
CHARLES UNIVERSITY IN PRAGUE FACULTY OF SOCIAL SCIENCES Institute of International Studies International Masters in Economy, State and Society Yuhan Liu The Impact of Financial Development on Innovation: A Comparative Study of Central and Eastern European Countries and Western European Countries Master thesis Prague 2023 Bibliographic note LIU, Yuhan. The Impact of Financial Development on Innovation: A Comparative Study of Central and Eastern European Countries and Western European Countries. Mater thesis. Charles University, Faculty of Social Sciences, Institute of International Studies. Supervisor M.Sc. Ing. Magdalena Fiřtová, Ph.D. Abstract This thesis applies a panel dataset of 40 European nations from 1995 to 2021 to investigate the impact of financial development on innovation. Considering the heterogeneity of these European countries, they are divided into two subgroups (Central and Eastern European countries and Western European countries) to carry out a comparative study and determine whether financial development influences innovation differently in the two groups of countries. This paper measures the development of the financial system from four dimensions, consisting of depth, access, efficiency, and stability, and selects two indicators to capture innovation, including innovation input and...
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Natural Catastrophes and Financial Development
Mikulíková, Pavla ; Horváth, Roman (advisor) ; Jakubík, Petr (referee)
Master's thesis - Natural Catastrophes and Financial Development Pavla Mikul'ıkov'a Academic year 2022/2023 Natural disasters affect lives of many people every year. Using a panel dataset of 214 countries from 1970 to 2021, this thesis analyses the impact of disasters on financial development, namely on depth, efficiency, access, and sta- bility, using fixed effects and system GMM estimators. The main findings imply that depth and stability are negatively affected by disasters, and the impact is more pronounced for lower-income countries. On the other hand, efficiency and access provide no consistent results. There is no type of disasters, e.g., biologi- cal or geophysical, that would have a significant impact on all types of financial development. The effect probably varies due to the different characteristics of disaster types. 1
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The impact of financial development on carbon dioxide emissions: Evidence from CEECs
Liu, Yuanhao ; Szobi, Pavel (advisor) ; Chondrogiannis, Ilias (referee) ; Čech, František (referee)
A sample of 13 CEE countries from 2000 to 2019 is used to investigate the total, direct, and indirect effects of financial development on carbon dioxide emissions. This study introduces four mediating effects of financial development on carbon dioxide emissions, i.e. economic growth, industrial structure, technology innovation, and the combined effect. To assess mediating effects and decompose total effect, GMM-SYS methods and bootstrap are employed. The empirical results entail that the total effect of financial development on CO2 emissions is inverted U-shaped. The mediating effects of economic growth, technology innovation, and the combined effect are enhancing mediating effects, with contributions to the total effect of 7.12%, 1.74%, and 3.29%, respectively. On the contrary, the mediating effect of industrial structure is a suppressing effect, with a 44.42% contribution rate. Therefore, industrial structure turns out to be the primary mediators through which financial development influences CO2 emissions in CEE countries. These findings give additional empirical evidence for the mediational model and Environment Kuznets Curve hypothesis from the perspective of financial development, and also provide new ideas for CEE policy makers to reach carbon neutrality objective by 2050.
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Finance and Growth Nexus: CEE & Central Asia and Beyond
Enkhbold, Buuruljin ; Horváth, Roman (advisor) ; Chytilová, Julie (referee) ; Korosteleva, Julia (referee)
Buuruljin Enkhbold Finance and Growth Nexus: CEE & Central Asia and Beyond Abstract (English) This thesis investigates the effect of financial development on economic growth using both global sample and regional samples focusing on Central and Eastern Europe (CEE) and Central Asia during the time period 1960-2013. The results of fixed effect panel and system GMM estimators suggest that the effect of private credit on growth had been neutral until 2007 and the effect turns negative if the time period is up to 2013. The negative effect of private credit on growth has been the largest for CEE and Central Asia, particularly for non-EU countries in the region. Stock market capitalisation and lending deposit spread have consistent effects regardless of the choice of time frame which implies that economies benefit from larger stock markets and lower lending deposit spread. Keywords: financial development, credit, stock market, spread, growth, CEE and Central Asia, generalized method of moments (GMM)
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Foreign Banks and Financial Development - Foreign Bank Lending in CEE Countries
Köthe, Anja ; Hlaváček, Michal (advisor) ; Svoboda, Karel (referee) ; Korosteleva, Julia (referee)
Foreign Banks and Financial Development - Foreign Bank Lending in CEE Countries Master thesis Anja Köthe Abstract The objective of this paper is to investigate the relation between foreign banks and financial development and to focus on foreign bank lending, in particular. The research focuses on four countries with a high share of foreign banks: Czech Republic, Hungary, Poland and Slovakia. Using a dataset of 122 banks over a 10 year period from 2005 to 2015 a fixed effects panel regression models is used for an empirical analysis. Loan growth as a proxy for lending behaviour and credit stability is used as the dependent variable. The empirical models investigate the determinants of loan growth in foreign and domestic banks as well as the dependence of foreign bank subsidiaries on their parent banks. The regression results indicate that domestic banks are more dependent on local economic conditions and bank performance. Their credit supply depends more on their profitability, loan quality and domestic market share. Foreign bank subsidiaries, in contrast, exhibit greater independence from local economic conditions and also from subsidiary performance indicators such as profitability ratios. Instead their lending behaviour is significantly influenced by the financial characteristics of their parent banks.
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Foreign Banks and Financial Development - Foreign Bank Lending in CEE Countries
Köthe, Anja ; Hlaváček, Michal (advisor) ; Svoboda, Karel (referee) ; Korosteleva, Julia (referee)
Foreign Banks and Financial Development - Foreign Bank Lending in CEE Countries Master thesis Anja Köthe Abstract The objective of this paper is to investigate the relation between foreign banks and financial development and to focus on foreign bank lending, in particular. The research focuses on four countries with a high share of foreign banks: Czech Republic, Hungary, Poland and Slovakia. Using a dataset of 122 banks over a 10 year period from 2005 to 2015 a fixed effects panel regression models is used for an empirical analysis. Loan growth as a proxy for lending behaviour and credit stability is used as the dependent variable. The empirical models investigate the determinants of loan growth in foreign and domestic banks as well as the dependence of foreign bank subsidiaries on their parent banks. The regression results indicate that domestic banks are more dependent on local economic conditions and bank performance. Their credit supply depends more on their profitability, loan quality and domestic market share. Foreign bank subsidiaries, in contrast, exhibit greater independence from local economic conditions and also from subsidiary performance indicators such as profitability ratios. Instead their lending behaviour is significantly influenced by the financial characteristics of their parent banks.
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Finance and Growth Nexus: CEE & Central Asia and Beyond
Enkhbold, Buuruljin ; Horváth, Roman (advisor) ; Chytilová, Julie (referee) ; Korosteleva, Julia (referee)
Buuruljin Enkhbold Finance and Growth Nexus: CEE & Central Asia and Beyond Abstract (English) This thesis investigates the effect of financial development on economic growth using both global sample and regional samples focusing on Central and Eastern Europe (CEE) and Central Asia during the time period 1960-2013. The results of fixed effect panel and system GMM estimators suggest that the effect of private credit on growth had been neutral until 2007 and the effect turns negative if the time period is up to 2013. The negative effect of private credit on growth has been the largest for CEE and Central Asia, particularly for non-EU countries in the region. Stock market capitalisation and lending deposit spread have consistent effects regardless of the choice of time frame which implies that economies benefit from larger stock markets and lower lending deposit spread. Keywords: financial development, credit, stock market, spread, growth, CEE and Central Asia, generalized method of moments (GMM)
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Determinants of Financial Development
Bzhalava, Eri ; Horváth, Roman (advisor) ; Lelovská, Adriána (referee)
Determinants of financial development Abstract The paper studies effects of country level determinants on the rate of financial development and, in particular, assesses the empirical question whether democracy and political freedom can enhance financial development, as measured by Bank Private Credit to GDP and Liquid Liabilities to GDP. Using Fixed Effects estimation techniques and a panel data for a list of 39 countries over the period 1990 to 2011, we provide evidence that suggests positive link between political openness and financial development. The empirical evidence also confirms financial openness and real per capita income to be positively correlated to financial deepening and in contrast, we find that size of financial sector does not spur the rate of financial development.
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