Naslov
Volatility of Capital Inflows in EU New Member States and Croatia

Autori
Jovančević, Radmila ; Globan, Tomislav ; Arčabić, Vladimir

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Economic Integration, Growth Prospects and Enlargement

Urednik/ci
Kandžija, Vinko ; Kumar, Andrej

Izdavač
Ekonomski fakultet Sveučilišta u Rijeci

Grad
Rijeka

Godina
2012

Raspon stranica
688-702

ISBN
978-953-7813-13-0

Ključne riječi
volatility, capital inflows, FDI, financial crisis, foreign loans

Sažetak
This paper investigates the volatility of capital inflows in EU new member states (NMS) and Croatia in the 1995-2010 period. The importance of the composition of capital inflows arises from the assumptions of different degrees of volatility between the three types of capital inflows, where foreign direct investment (FDI) is considered less volatile than portfolio investment and foreign loans. In accordance with relevant literature on this topic, three measures of volatility of capital inflows are used in the analysis: standard deviation, coefficient of variation and volatility index. Results obtained in this paper confirm aforementioned theoretical assumptions as it is proved that FDI was the least volatile type of foreign investment in analysed countries during the whole period, as well as during the shorter subperiod that covers the recent global financial crisis. Results further stressed the importance of differentiating between types of foreign financing, and also encouraging and eliminating administrative and other barriers to the inflow of FDI. It is also proved that total capital inflows in Croatia were the least volatile comparing to all NMS, as Croatia experienced constant inflows of foreign bank loans and had no large-scale FDI surges in the pre-crisis period.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

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