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EN
Financial euroization is a significant phenomenon in developing countries. The key financial institutions for macroeconomic stability in these countries are the banks. Conversion of most of the financial assets and liabilities into foreign currency creates a currency mismatch between the assets and liabilities in domestic and foreign currency. Banks in the role of intermediaries between depositors and borrowers face the risks of accepting foreign currency deposits and placing foreign currency loans. With this, financial euroization can impact the performance of banks. The paper’s main objective is to analyze the impacts of euroization on the performance of banks in North Macedonia, Serbia, and Bosnia and Herzegovina for the period from 2010 to 2020. For performance measure, we use bank profitability. The paper uses a pre-set empirical model, in which the dependent variable is ROA (annual data for the return on assets - as a variable for measuring the profitability of banks) and a set of independent variables, including the degree of euroization. The results suggest that the model is robust, and the variables are statistically significant. In conclusion, this outcome can be ascribed to the segmentation of the bank credit portfolio in credit denominated in domestic versus foreign currency credit denomination. Moreover, the degree of euroization proved to be statistically significant for predicting the performance of banks, hence is high bank management decision-making information.
PL
Analizy teoretyczne postulują pozytywny wpływ bezpośrednich inwestycji zagranicznych (BIZ) na Produkt Krajowy Brutto (PKB) kraju przyjmującego poprzez transfer technologii, rozwój kapitału ludzkiego, itd. Niniejsze opracowanie bada rzeczywiste efekty BIZ na wzrost gospodarczy w Albanii, gdzie BIZ stanowiły jeden z priorytetów i fundamentów polityki gospodarczej po 1990 r. Wykorzystano podejście kointegracyjne do przeanalizowania danych kwartalnych z lat 1991–2012. Dane pochodzą z Banku Albanii. Wykazano istotny związek długookresowy między dynamiką PKB i wskaźnikiem BIZ do PKB. Udowodniono, że przyrost BIZ w stosunku do PKB znacząco stymuluje wzrost gospodarczy w Albanii.
EN
Theoretical studies strongly support the positive effects of Foreign Direct Investment (FDI) in the Gross Domestic Product (GDP) of the host country through technology transfer, human capital formation, etc. This study aims to examine the real effects of FDI in the economic growth of Albania, since FDI was one of the first pillars of the economy that the government gave priority to after 1990. This relationship was investigated by using the Co-Integration approach for the quarterly data from 1991 to 2012. The time series data are taken from the Bank of Albania. As expected, the empirical findings of this study reveal the existence of a long run relationship of GDP growth and FDI to GDP ratio. Being strongly correlated to each other, FDI to GDP ratio shows its significant contribution to Albanian economic growth.
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