Naslov
The Impact of FDI Flows on Economic Convergence in Central and Eastern Europe

Autori
Jovančević, Radmila ; Globan, Tomislav

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Economic Integrations, Competition and Cooperation

Urednik/ci
Kandžija, Vinko ; Kumar, Andrej

Izdavač
Ekonomski fakultet Sveučilišta u Rijeci

Grad
Rijeka

Godina
2014

Raspon stranica
66-80

ISBN
978-953-7813-19-2

Ključne riječi
foreign direct investment, catching-up, transition, convergence

Sažetak
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.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA