Template-type: ReDif-Paper 1.0
Author-Name: Kleimeier S. 
Author-Name: Sander H. 
Author-Name: Heuchemer S. 
Author-workplace-name: GSBE
Title: The resurgence of cultural borders in international finance during the financial crisis: Evidence from Eurozone cross-border depositing
Abstract: In this paper, we demonstrate that cultural borders in international finance resurge during financial crises. To investigate the role of cultural borders during both tranquil and crisis periods, we employ a unique data set that focuses on Eurozone cross-border depositing in a gravity-model framework. We provide evidence that cultural distance limits international financial integration. However, cultural borders lost influence during a Europhoria phase after the introduction of the Euro notes in 2002, indicating that confidence in the new currency helps to overcome cultural borders. In contrast, cultural borders have severely limiting effects during crisis periods.
Keywords: Single Equation Models; Single Variables: Models with Panel Data; Longitudinal Data; Spatial Time Series; Financial Aspects of Economic Integration; International Financial Markets; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; Cultural Economics; Economic Sociology; Economic Anthropology: General; 
Classification-JEL: C23; F36; G15; G21; Z10; .
Series:  Research Memorandum
Creation-Date: 2014
Number: 013
File-URL: http://pub.maastrichtuniversity.nl/83e47199-adc1-45df-8f85-4b3202112fc8
File-Format: application/pdf
File-Size: 756334
Handle: RePEc:unm:umagsb:2014013