Sectoral Composition of Foreign Direct Investment and External Vulnerability in Eastern Europe
In the run up to the global crisis, countries in Central Eastern and Southeastern Europe attracted large capital inflows and some of them built up large external imbalances. This paper investigates whether these imbalances are linked to the sectoral composition of FDI. It shows that FDI in the tradable sectors leads to an improvement of the external balance. We also find that the countries with large market size, good infrastructure, greater trade integration, and educated labor force are more likely to receive more FDI in the tradable sectors.
|Date of creation:||01 Jun 2011|
|Contact details of provider:|| Postal: International Monetary Fund, Washington, DC USA|
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
|Order Information:||Web: http://www.imf.org/external/pubs/pubs/ord_info.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hui Tong & Shang-Jin Wei, 2011.
"The Composition Matters: Capital Inflows and Liquidity Crunch During a Global Economic Crisis,"
Review of Financial Studies,
Society for Financial Studies, vol. 24(6), pages 2023-2052.
- Hui Tong & Shang-Jin Wei, 2009. "The Composition Matters: Capital Inflows and Liquidity Crunch during a Global Economic Crisis," NBER Working Papers 15207, National Bureau of Economic Research, Inc.
- Hui Tong & Shang-Jin Wei, 2009. "The Composition Matters; Capital Inflows and Liquidity Crunch During a Global Economic Crisis," IMF Working Papers 09/164, .
- Hui Tong & Shang-Jin Wei, 2010. "The Composition Matters: Capital Inflows and Liquidity Crunch during a Global Economic Crisis," Working Papers 172010, Hong Kong Institute for Monetary Research.
- Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
- Yuko Kinoshita & Nauro F. Campos, 2003.
"Why Does Fdi Go Where It Goes? New Evidence From The Transition Economies,"
William Davidson Institute Working Papers Series
2003-573, William Davidson Institute at the University of Michigan.
- Yuko Kinoshita & Nauro F. Campos, 2003. "Why Does Fdi Go Where it Goes? New Evidence From the Transition Economies," IMF Working Papers 03/228, .
- Campos, Nauro F & Kinoshita, Yuko, 2003. "Why Does FDI Go Where it Goes? New Evidence from the Transitional Economies," CEPR Discussion Papers 3984, C.E.P.R. Discussion Papers.
- Shang-Jin Wei, 1997.
"How Taxing is Corruption on International Investors?,"
William Davidson Institute Working Papers Series
63, William Davidson Institute at the University of Michigan.
- Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
- Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," NBER Working Papers 6030, National Bureau of Economic Research, Inc.
- International Monetary Fund, 2010. "The Credit Boom in the EU New Member States; Bad Luck or Bad Policies?," IMF Working Papers 10/130, .
- Cheng, Leonard K. & Kwan, Yum K., 2000. "What are the determinants of the location of foreign direct investment? The Chinese experience," Journal of International Economics, Elsevier, vol. 51(2), pages 379-400, August.
- Bevan, Alan A. & Estrin, Saul, 2004. "The determinants of foreign direct investment into European transition economies," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 775-787, December.
- Claudio Montenegro & Abdelhak S Senhadji, 1998. "Time Series Analysis of Export Demand Equations; A Cross-Country Analysis," IMF Working Papers 98/149, .
- Linda Goldberg, 2004.
"Financial-Sector FDI and Host Countries: New and Old Lessons,"
NBER Working Papers
10441, National Bureau of Economic Research, Inc.
- Linda S. Goldberg, 2007. "Financial sector FDI and host countries: new and old lessons," Economic Policy Review, Federal Reserve Bank of New York, issue Mar, pages 1-17.
- Gordon H. Hanson & Raymond J. Mataloni, Jr. & Matthew J. Slaughter, 2001.
"Expansion Strategies of U.S. Multinational Firms,"
NBER Working Papers
8433, National Bureau of Economic Research, Inc.
- Gabor Hunya & Monika Schwarzhappel, 2008. "Decline to Follow Uneven FDI Inflow Growth," wiiw FDI Reports 2008-06, The Vienna Institute for International Economic Studies, wiiw.
- Daniel Leigh & Abdul d Abiad & Ashoka Mody, 2007. "International Finance and Income Convergence; Europe is Different," IMF Working Papers 07/64, .
- Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009.
"The Effects of Privatization and Ownership in Transition Economies,"
Journal of Economic Literature,
American Economic Association, vol. 47(3), pages 699-728, September.
- Estrin, Saul & Hanousek, Jan & Kocenda, Evzen & Svejnar, Jan, 2009. "Effects of privatization and ownership in transition economies," Policy Research Working Paper Series 4811, The World Bank.
- Paolo Mauro, 2007. "Do Some Forms of Financial Flows Help Protect Against "Sudden Stops"?," World Bank Economic Review, World Bank Group, vol. 21(3), pages 389-411, September.
- Christian Bellak & Markus Leibrecht & Joze P. Damijan, 2007.
"Infrastructure endowment and corporate income taxes as determinants of Foreign Direct Investment in Central- and Eastern European Countries,"
LICOS Discussion Papers
19307, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Christian Bellak & Markus Leibrecht & Jože P. Damijan, 2009. "Infrastructure Endowment and Corporate Income Taxes as Determinants of Foreign Direct Investment in Central and Eastern European Countries," The World Economy, Wiley Blackwell, vol. 32(2), pages 267-290, 02.
- Paolo Mauro & Andrei A Levchenko, 2006. "Do Some Forms of Financial Flows Help Protect From Sudden Stops?," IMF Working Papers 06/202, .
- Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004.
"FDI and economic growth: the role of local financial markets,"
Journal of International Economics,
Elsevier, vol. 64(1), pages 89-112, October.
- Sebnem Kalemli-Ozcan & Laura Alfaro & Selin Sayek & Areendam Chanda, 2002. "FDI and Economic Growth: The Role of Local Financial Markets," Macroeconomics 0212007, EconWPA.
- Jonathan David Ostry & Atish R. Ghosh & Karl F Habermeier & Marcos d Chamon & Mahvash S Qureshi & Dennis B. S. Reinhardt, 2010. "Capital Inflows; The Role of Controls," IMF Staff Position Notes 2010/04, International Monetary Fund.
- Ashoka Mody, 2004. "Is FDI Integrating the World Economy?," The World Economy, Wiley Blackwell, vol. 27(8), pages 1195-1222, 08.
- Jesmin Rahman, 2008. "Current Account Developments in New Member States of the European Union; Equilibrium, Excess, and EU-Phoria," IMF Working Papers 08/92, .
- Martin Schindler, 2009. "Measuring Financial Integration: A New Data Set," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 222-238, April.
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:11/123. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow)or (Hassan Zaidi)
If references are entirely missing, you can add them using this form.