Since 2014
Inflow of Foreign Capital as a Factor of the Development of Current Accounts of the Eastern European Countries
Journal Transition Studies Review
View Archive Info| Field | Value | |
| Title |
Inflow of Foreign Capital as a Factor of the Development of Current Accounts of the Eastern European Countries
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| Creator |
Yakubovskiy, Sergey
Rodionova, Tetiana Kyfak, Andrii |
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| Subject |
International Economics: International Investment; Long-term Capital Movements; Empirical Studies of Trade; International Business
international economics, direct, portfolio and other investments, foreign capital income, export, import, income balance, current account, return on liabilities F14 ∙ F21 ∙ F23 ∙ F32 ∙ F34 ∙ O52 ∙ O57 |
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| Description |
The influence of foreign investments onto export, import and current account balances of five emerging market economies of Eastern Europe is identified in the paper. Constructing vector autoregression models and performing Granger causality tests revealed the impact of foreign investments onto the formation of current accounts components of Czech Republic, Slovak Republic, Poland, Hungary and Ukraine. For a more comprehensive assessment of the influence of foreign capital on the recipient countries a new economic indicator, the coefficient of international transaction compensation of foreign investment income reparation (CINR) is introduced. Analysis shows that attracting foreign capital has significant influence on the external economic positions of Czech Republic, Slovak Republic, Poland, Hungary. However, this influence is ambiguous. On the one hand, it has led to an improvement in the trade balance of the countries, on the other – to the outflow of capital as foreign investment income. The revealed in the paper increasing trend of the CINR coefficients is positive, but the high level of return on liabilities controlled by foreign direct investors requires constant monitoring of its influence on current accounts and foreign liabilities accumulation.
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| Publisher |
Journal Transition Studies Review
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| Contributor |
—
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| Date |
2019-11-14
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://transitionacademiapress.org/jtsr/article/view/267
10.14665/1614-4007-26-001 |
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| Source |
Journal Transition Studies Review; Vol 26, No 2 (2019); 3-14
1614-4015 1614-4007 |
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| Language |
eng
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| Relation |
http://transitionacademiapress.org/jtsr/article/view/267/179
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| Coverage |
Eastern European Countries
1994-2018 — |
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| Rights |
Copyright (c) 2019 Journal Transition Studies Review
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