Effect of Foreign Banking Capital on the Financial Innovativeness of the Country: Evidence from Former Soviet Union and Young EU Members Countries

The main hypothesis of the paper was assumption that increase in level innovation financial sector post-Soviet states and young European Union (EU) members with an imperfect banking a protracted crisis is accompanied by difficulties accessing financing sources significantly depends on volume foreign capital. aim study to identify correlation between growth innovativeness country capital, using Panel data analysis from 2009 2019. Unlike previous studies, it taken into account republics former Soviet increasingly dependent external credit resources, while innovative development EU countries becomes financially independent, this constitutes scientific novelty research. results confirm relationship capital country, especially its low medium levels. To test his hypothesis, author presented empirical models conditions interaction Financial Innovativeness Index. Based comparison indicators clusters are distinguished according nature direction analyzed indicators. concludes amount need consistently expand tools for country’s economic attracting it.