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Determinants of Holding International Reserves: Evidence from Meta-Regression Analysis

Author

Listed:
  • Mariia Chebanova
  • Olha Havrylyshyn
  • Anastasiya Ivanova
  • Vladyslav Shovkovyi

    (Kyiv School of Economics)

Abstract

Traditionally, gold and currency reserves are seen as one of the key elements in protecting the economy from external shocks and their accumulation is largely perceived as an insurance against the risk of these negative (in terms of the effect on the economy) shocks occurring. Optimization of reserves is of great economic importance, since their understatement worsens a country’s solvency on the world market and limits the regulatory capabilities of the state while the opposite situation leads to the freezing of a significant part of the national wealth for a long period, which means missing the potential of its possible investment (opportunity cost) Our study tries to systemize existing evidence on the main determinants of international reserves and ascertain the significance of their effect.

Suggested Citation

  • Mariia Chebanova & Olha Havrylyshyn & Anastasiya Ivanova & Vladyslav Shovkovyi, 2019. "Determinants of Holding International Reserves: Evidence from Meta-Regression Analysis," Modern Economic Studies, Kyiv School of Economics, vol. 2(1), pages 12-23.
    • Handle: RePEc:kse:modern:v:2:y:2019:i:1:p:12-23
    as

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    File URL: http://repec.kse.org.ua/pdf/mes/v2_n3_Chebanova_Havrylyshyn_Ivanova_Shovkovyi_ENG.pdf
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    References listed on IDEAS

    as
    1. Aizenman, Joshua & Cheung, Yin-Wong & Ito, Hiro, 2015. "International reserves before and after the global crisis: Is there no end to hoarding?," Journal of International Money and Finance, Elsevier, vol. 52(C), pages 102-126.
    2. Yin-Wong Cheung & Hiro Ito, 2009. "A Cross-Country Empirical Analysis of International Reserves," International Economic Journal, Taylor & Francis Journals, vol. 23(4), pages 447-481.
    3. Joshua Aizenman & Jaewoo Lee, 2007. "International Reserves: Precautionary Versus Mercantilist Views, Theory and Evidence," Open Economies Review, Springer, vol. 18(2), pages 191-214, April.
    4. Kelly, Michael G, 1970. "The Demand for International Reserves," American Economic Review, American Economic Association, vol. 60(4), pages 655-667, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    international reserves; shocks; meta-regression analysis;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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