The Impact of FDI Flows on Economic Convergence in Central and Eastern Europe (CROSBI ID 49346)
Prilog u knjizi | izvorni znanstveni rad
Podaci o odgovornosti
Jovančević, Radmila ; Globan, Tomislav
engleski
The Impact of FDI Flows on Economic Convergence in Central and Eastern Europe
During the transition process, due to low levels of domestic savings, countries of Central and Eastern Europe (CEE) have used foreign capital flows to finance economic restructuring, intensify investment projects, finance increasing domestic demand in order to obtain high economic growth rates. By doing so, CEE countries experienced a process of quick economic convergence with EU-15 countries. However, the global financial crisis brought an abrupt end of these trends by triggering a severe economic crisis in Europe, with CEE countries taking a strong hit. An economic divergence started to take place in most CEE countries, with a sharp decline of foreign capital flows to these countries. The aim of this paper is to explore the role of foreign direct investment flows in economic convergence of European post-transitional countries with EU-15 countries. The main hypothesis is that the countries which received highest amounts of greenfield investments, achieved higher convergence rates and managed to catch-up with Western European countries faster. The paper also hypothesizes that the crisis-induced economic divergence was most evident in countries with pronounced sudden stops of foreign investment flows.
foreign direct investment, catching-up, transition, convergence
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Podaci o prilogu
66-80.
objavljeno
Podaci o knjizi
Economic Integrations, Competition and Cooperation
Kandžija, Vinko ; Kumar, Andrej
Rijeka: Ekonomski fakultet Sveučilišta u Rijeci
2014.
978-953-7813-19-2