IDEAS home Printed from https://ideas.repec.org/a/avo/emipdu/v28y2019i1p159-173.html
   My bibliography  Save this article

Determinants Of Foreign Exchange Reserves In Croatia: A Quantile Regression Approach

Author

Listed:
  • Mile Bosnjak

    (University of Zagreb)

  • Gordana Kordic

    (University of Zagreb)

  • Ivan Budimir

    (Croatian National Bank)

Abstract

The paper explores quantile regression approach to examine determinants of foreign exchange reserves in Croatia at different levels. The research is based on quarterly time series data on foreign exchange reserves, GDP level and EUR/HRK exchange rate level. Time span ranges from 2000Q1 to 2018Q3. The results revealed the GDP (at constant prices) and nominal exchange rate against euro (daily, end of quarter) as significant determinants of foreign exchange reserves in Croatia. Furthermore, at the higher levels of foreign exchange reserves its elasticity to changes in its determinants is higher. Consequently, at the lower levels of foreign exchange reserves the elasticities are found to be lower. Having reached 7th decile of foreign exchange reserves the elasticity to exchange rates vanishes.

Suggested Citation

  • Mile Bosnjak & Gordana Kordic & Ivan Budimir, 2019. "Determinants Of Foreign Exchange Reserves In Croatia: A Quantile Regression Approach," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 28(1), pages 159-173, june.
    • Handle: RePEc:avo:emipdu:v:28:y:2019:i:1:p:159-173
    as

    Download full text from publisher

    File URL: https://hrcak.srce.hr/clanak/322672
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    foreign exchange reserves; Croatia; quantile regression approach; exchange rate; GDP;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:avo:emipdu:v:28:y:2019:i:1:p:159-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nebojsa Stojcic (email available below). General contact details of provider: https://edirc.repec.org/data/oedubhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.