Capital mobility in transition countries of Central Europe: macroeconomic performance factors and structural policies
نویسندگان
چکیده
In the course of transition, the former centrally planned economies of central Europe have attracted increasing shares of the international capital flows to emerging market economies. Moreover, compared to other world regions, a relatively large share of these flows has been constituted of foreign direct investment. An exploration of the determinants of these capital flows, using a neo-classical model, provided only medium-low levels of explanation, and the importance of considering institutional frameworks. The remainder of the paper examines the influence of financial sector development and of privatisation on foreign direct investment, portfolio investment, and ‘other’ forms of investment.
منابع مشابه
Output Loss from Sudden Stop of FDI and the Role of Macroeconomic Policies
Generally, international flows of capital and foreign direct investment attraction are challengeable issues in the literature of economic growth and development in emerging market countries. However, the fluctuations in foreign direct investment, including sudden flood and stop, will affect emerging markets' output and macroeconomic variables. Using an econometric model with unbalanced panel da...
متن کاملFactor Mobility and Fiscal Policy in the Eu: Policy Issues and Analytical Approaches
Increased integration of labour and capital markets creates significant challenges for the welfare states of modern Europe. Taxation of capital and labour that finances extensive programs of cash and in-kind redistribution creates incentives for capital owners and workers to locate in regions where they obtain favorable fiscal treatment. Competition among countries for mobile resources constrai...
متن کاملAbstract Macroeconomic Policies and Achievements in Transition Economies, 1989-1999
The paper discusses the reasons for the observed variation in the sequencing, speed and content of reform policies, in the 1990s, among 25 post-socialist countries of Central Europe and the Former Soviet Union. It argues that these differences, while considerable in the early 1990s, did not amount to as substantially different reform strategies as it was often claimed and, in any case, have for...
متن کاملCapital Mobility in OECD Countries: A Multi-Level Factor Approach to Saving–Investment Correlations
While a high saving–investment correlation is one of the most robust empirical regularities in international economics, there has been debate about whether it can be interpreted as evidence of barriers to international capital flows. When global and country-specific shocks shift saving and investment in the same direction, the high saving–investment association may be observed even in perfectly...
متن کاملAdjustment and Growth: Macroeconomic Performance of the IMF and World Bank Integrated model for Selected Mediterranean and MENA Developing Countries
accentuate on the programs advocated by the IMF and the World Bank from the model known as the "Integrated Model IMF-World Bank". This research makes a comprehensive evaluation of the applicability of this model to analyze the performance of adjustment programs in the case of six countries in the Mediterranean and Middle East and North Africa (MENA) region, namely, Algeria, Egypt, Iran, Morocco...
متن کامل