Examining the Relationship between Financial Development and International Trade in Croatia

Bilas, Vlatka; Bošnjak, Mile; Novák, Ivan

doi:10.1515/jeb-2017-0009

Cited by 19 publications

(14 citation statements)

References 38 publications

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“…This study has also incorporated financial development using domestic credit provided by the financial sector. Several studies have proved that financial development can play a vital role for the trade balance (Ahad, 2017;Bilas et al, 2017;Yakubu et al, 2018;Rehman et al, 2020). In the perspective of financial development, this study hypothesized that an improved/increased level of financial development caused to reduce trade balance.…”

Section: Methodsmentioning

confidence: 93%

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

Rehman

Chaudhry

Arshed

et al. 2020

RAMSS

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This research study is an attempt to explore the nonlinear relationship between domestic and foreign income and deficit in the trade balance for a sample of 13 high deficit Asian countries from 1990 to 2019. Furthermore, the study also moderates the role of financial development and carbon emissions with trade balance. The study results validated the existence of a nonlinear relationship between trade balance and domestic and foreign income. For this purpose, three different types of model are formulated. The first model was of the benchmark type, which contains only the domestic and foreign income effect, while in the other two models, the role of financial development and carbon emissions is also included. The estimated results evinced the existence of U shape relationship for domestic income and inverted U shape curve for World income. The results revealed that it would be very suitable for selected countries to boost up domestic income. Because of it, the deficit in trade balance will start to decline. The financial development and carbon emissions are found to be a significant contributor to reduce the deficit in the trade balance.

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Section: Methodsmentioning

confidence: 93%

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

Rehman

Chaudhry

Arshed

et al. 2020

RAMSS

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“…It is worth noting that methods for exploring longterm relationships are widely used in not only financial analysis (e.g. (Fabozzi 2006;Matuszewska-Janica 2011;Witkowska et al 2012Gulzar et al 2019İskenderoglu and Akdağ 2020), including mutual funds: (Matallin and Nieto 2002;Pojanavatee 2014)) but also in macroeconomic analyses (e.g., Bilas et al 2017;Pasovic and Efendic 2018;Škare et al 2020). The Johansen tests constitute one of these tools.…”

Section: Methodsmentioning

confidence: 99%

Long-Term Relationships Between Mutual Funds and Equity Market

Matuszewska‐Janica

Żebrowska‐Suchodolska

2022

South East European Journal of Economics and Business

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Investment funds are an attractive form of investment, especially for those investors who do not want to invest on their own, but rather entrust their funds to professional managers. However, the question arises as to whether the fund managers can diversify the asset portfolio, or whether it is only a passive investment policy that largely imitates the stock market index. In this context, it becomes important to examine the long-term relationships between open-ended equity funds and the funds’ benchmarks (stock exchange indices). This study analyses series of weekly quotations for 15 FIOs and 4 indices of the Warsaw Stock Exchange (WSE) from 2004 to 2021. The Johansen method was used as the main tool. The results indicate a lack of long-term relationships between the quotations of the selected indices and the valuation of the vast majority of funds. This result may be due to the analysis covering quite a long period in which the stock exchange situation changed more than once. In the long-term, this may result in disturbances of the long-term balance to such an extent that the relation can no longer return to its long-term path, so the vast majority of the analysed funds do not follow the indices (their benchmarks). This observation can apply to both developed and emerging capital markets.

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“…The reviewed literature provide a comprehensive insights into various forms of the linkage between financial sector of the country and its international position and give sound arguments to the relationship in the Serbian and Romanian case. Bilas et al (2017) provided the estimates for the case of Croatia, but linkage between financial sector and international position of post-socialist economies is generally under-examined. Serbia and Romania belong to the group of post-communist countries with underdeveloped financial market in terms that vast majority of financial intermediation goes through commercial banks and the most widespread financial product by far is a pure banking loan.…”

Section: Literature Overviewmentioning

confidence: 99%

Determinants of Current Account in Cases of Serbia and Romania: Time-Varying Parameters Approach

Bošnjak

2019

South East European Journal of Economics and Business

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Following competing theories, the paper brings the determinants of the Serbian and Romanian current account dynamics with policy implications. The research sample consists of quarterly time series data over the period 2004q1-2017q2 and 2007q1-2017q4 for the cases of Serbian and the Romanian case, respectively. The estimates from the state space model with time-varying parameters (TVP) approach suggest that role of domestic demand is significant in both cases even though more prominent in case of Serbia. Marshall-Lerner conditions were fulfilled in case of Serbia while not in the Romanian case. The effects of money supply on the current account is found to be in line with the monetary approach in case of Romania while in the Serbian case the effect of an increase in the money supply is positive. Consequently, to resolve the issue of the current account deficit the research findings suggest the country-specific policy mix for each country.

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Examining the Relationship between Financial Development and International Trade in Croatia

Cited by 19 publications

References 38 publications

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

The Nonlinear Relationship between Trade Balance and Income for Selected Asian Economies

Long-Term Relationships Between Mutual Funds and Equity Market

Determinants of Current Account in Cases of Serbia and Romania: Time-Varying Parameters Approach

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