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Investment dynamics in Central and Eastern Europe: Why doesn’t the sun always rise from the east?

Author

Listed:
  • Estefanía Mourelle

    (Department of Economics, Universidade da Coruña, Spain)

  • Juan Carlos Cuestas

    (IEI and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

The aim of this paper is to shed some light on the issue of the dynamics of investment in Central and Eastern European Countries (CEECs). The role that investment plays in the economic development is of particular interest in these countries, as, on the one hand, they have experienced a transition to market economies and, on the other hand, they have entered the European Union. This study contributes to the related literature by resorting to nonlinear models, which give us a better understanding of the behaviour of the dynamics of investment, in comparison to linear specifications. Our results evidence the importance of the macroeconomic conditions on the dynamics of investment in CEECs, particularly its own recent history and the cyclical state of the economy.

Suggested Citation

  • Estefanía Mourelle & Juan Carlos Cuestas, 2022. "Investment dynamics in Central and Eastern Europe: Why doesn’t the sun always rise from the east?," Working Papers 2022/02, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2022/02
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment; Global Financial Crisis; Central and Eastern Europe; Nonlinearities;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration

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