Capital Flows and Credit Development: Empirical Evidence from the CEE Region
|Author:||Bc. Jan Izák|
|Year:||2014 - summer|
|Leaders:|| doc. PhDr. Adam Geršl Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The aim of this bachelor thesis is to investigate the relationship between the structure of international
capital flows and credit development in Central and Eastern Europe. Over last twenty years, the CEE
region has often been a destination for capital flows from developed countries which have significantly
influenced domestic economies. With respect to the rapid growth of credit over the same period, it
makes sense to deal with this relationship in more detail. The data are analyzed separately for
corporations and households as they experienced different credit development. In the analysis, I apply
OLS and PCSE model on the quarterly data in the period 1997-2013. The results of the analysis imply
the influence of FDI and OI inflows in both sectors but only negligible impact of PI inflows. However,
the importance of FDI inflows have decreased over time.