<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This research paper aims to investigate. the impact of inflation. on financial sector performance in Western. Balkan. countries. The topic was chosen considering the financial sector’s fundamental role and its. impact on sustainable economic growth. This impact is measured through the effect that macroeconomic determinants of financial. performance such. as inflation, GDP. growth, general government final consumption expenditure, trade, and the lending interest rate have on credit to private sector as a share of GDP and broad definition of money as a ratio of GDP, which were used to proxy financial sector development. The data are provided by the World Bank as well as the Central. Banks. of the respective countries, for the period 2002–2021. The research methodology consists of different panel regression models such as OLS, OLS robust, Fixed effects, Random effects, and Generalized method of moments (GMM). Findings indicate that domestic credit to the private sector and inflation are positively correlated, whereas broad money and inflation are negatively correlated.</p>
</abstract>

This research paper aims to investigate. the impact of inflation. on financial sector performance in Western. Balkan. countries. The topic was chosen considering the financial sector’s fundamental role and its. impact on sustainable economic growth. This impact is measured through the effect that macroeconomic determinants of financial. performance such. as inflation, GDP. growth, general government final consumption expenditure, trade, and the lending interest rate have on credit to private sector as a share of GDP and broad definition of money as a ratio of GDP, which were used to proxy financial sector development. The data are provided by the World Bank as well as the Central. Banks. of the respective countries, for the period 2002–2021. The research methodology consists of different panel regression models such as OLS, OLS robust, Fixed effects, Random effects, and Generalized method of moments (GMM). Findings indicate that domestic credit to the private sector and inflation are positively correlated, whereas broad money and inflation are negatively correlated.

The Impact of Inflation on Financial Sector Performance: Evidence. From. Western Balkan Countries

SEEU Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

This research paper aims to investigate. the impact of inflation. on financial sector performance in Western. Balkan. countries. The topic was chosen...

The Impact of Inflation on Financial Sector Performance: Evidence. From. Western Balkan Countries

Published Online: Dec 29, 2023

Page range: 74 - 89

DOI: https://doi.org/10.2478/seeur-2023-0071

Keywords
Inflation, financial sector, panel data

© 2023 Argjira Bilalli et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Impact of Inflation on Financial Sector Performance: Evidence. From. Western Balkan Countries

Published Online: Dec 29, 2023

Page range: 74 - 89

DOI: https://doi.org/10.2478/seeur-2023-0071

KeywordsInflation, financial sector, panel data

© 2023 Argjira Bilalli et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Inflation, financial sector, panel data