Please use this identifier to cite or link to this item:
Hahn, Franz R.
Year of Publication: 
Series/Report no.: 
WIFO Working Papers 417
The fast adoption of Western-style democracy and market economy principles as established by EU standards by many of the Eastern European "transformation countries" since the early 1990s should have raised cross-border lending by banks based in "old" EU member countries to clients resident in new Eastern European EU member countries. This should particularly apply to Austria since it shares a long-lasting common history and, hence, common culture with these countries. To account for common culture we propose a new gauge aimed at measuring "cultural proximity" by making out onomastic similarities between common surnames of Austrian residents and common surnames of residents in the Czech Republic, Slovak Republic, in Hungary and Slovenia, respectively. By exploring, with panel econometric techniques, cross-border lending activities of Austria's small-sized to medium-sized regional banks, located close to its eastern border, over the period from 1996 to 2008 this paper provides evidence that is supportive of the presumption that cultural closeness matters for making basic laws of economics work.
panel econometric analysis
cross-border bank lending
common culture
Document Type: 
Working Paper

Files in This Item:
898.57 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.