earticle

영어

The purpose of this study is to analyze the determinants of international reserves using the model with the amount of imports, opportunity cost of international reserves, exchange rate volatility and foreigners' equity investment. This paper shows that while the import coefficient of the post-crash period is much greater than that of the pre-crash period, the coefficients of opportunity cost and uncertainty are not significantly different between pre- and post-crash period. This study finds that the coefficients of import, foreigners' equity investment and exchange rate volatility have positive signs and that of opportunity cost negative one as expected. And the international reserves are in the condition of the economies of scale, but the degree of economies of scale tends to decrease, indicating that more deliberate management of international reserves is required and that the actual reserves are accumulated more than the optimal level.