FOREIGN CAPITAL INFLOWS IN CENTRAL AND EAST EUROPEAN COUNTRIES

2021 ◽  
Vol 2021 (11) ◽  
pp. 55-74
Author(s):  
Garabed MINASSIAN ◽  
◽  
Victor YOTZOV ◽  
Keyword(s):  
Capital Inflows ◽  
Economic Assistance ◽  
Financial Flows ◽  
East European ◽  
Eu Countries ◽  
Cross Border ◽  
Mutual Economic Assistance ◽  
Foreign Capital Inflows ◽  
The Eu ◽  
Cross Border Movement

Free cross-border movement of goods and capital correlates with the general economic state of a country in both apparent and subtle ways. The intensity of financial and economic interactions with the outside world is an indicator of the sustainability and efficiency of the national economy. After joining the EU, all Member States liberalized the balance of payments (BoP), i.e. ensured free and unrestricted cross-border movement of goods and capital. For certain countries the liberalization of BoP was a considerable challenge, which they managed to successfully overcome. These were the EU countries of the Council for Mutual Economic Assistance (CMEA) was active among the former socialist countries until 1990, or the so-called "CMEA-EU countries". For an economic comparison to be plausible, it has to be made between the dynamics of comparable economies. Such a group of economies is formed by the CMEA-EU countries. EU membership provided them with the opportunity to use on their own their potential in property, intellect, power and resources. This is the reason why the present study has adopted a comparative analysis based on CMEA-EU countries. An attempt has been made to comprehensively monitor and analytically assess all major financial flows, especially in the CMEA-EU countries, and their impact on economic dynamics. A comparison is made for both the positive and negative aspects of the incoming financial resources in these countries. Particular emphasis is placed on macroeconomic elements and policies that outline, create conditions, and predetermine the scale, interactions and projections of cross-border financial flows.

Beyond socialist camaraderie. Cross-border railway between German Democratic Republic, Poland and Soviet Union (1950s–60s)

2019 ◽  
Vol 40 (2) ◽  
pp. 251-269 ◽  
Author(s):  
Falk Flade
Keyword(s):  
Soviet Union ◽  
Individual Member ◽  
Economic Assistance ◽  
Railway Transport ◽  
Economic Interests ◽  
Mutual Economic ◽  
East European ◽  
Cross Border ◽  
Mutual Economic Assistance ◽  
Major Bottleneck

In order to facilitate cross-border railway transport between socialist countries in Eastern Europe, the Council of Mutual Economic Assistance and later the Organisation for Cooperation of Railways were established in 1949 and 1956. Joint planning, standardisation and tariff policy were the main fields of cooperation. The paper focuses on the struggles between Council of Mutual Economic Assistance and Organisation for Cooperation of Railways member countries regarding transit tariffs for cross-border freight shipments. These struggles, dragging on for more than three decades, reveal the economic interests of individual member countries and the limitations of socialist foreign trade (and alleged friendship). This study argues that despite of political declarations and the establishment of socialist international organisations, the East European railways became a major bottleneck in intrabloc trade.

scholarly journals The Determinants of FDI Sectoral Structure in the Central and East European EU Countries

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 66
Author(s):  
Mario Pečarić ◽  
Tino Kusanović ◽  
Pavle Jakovac
Keyword(s):  
Market Integration ◽  
Manufacturing Sector ◽  
Capital Inflows ◽  
Fdi Inflows ◽  
East European ◽  
Services Sector ◽  
Eu Countries ◽  
Sectoral Structure ◽  
Gdp Growth Rate ◽  
The Eu

The EU model of market integration, based on financial openness, leads to divergence and sectoral specialization, which makes the convergence of Central and East European EU countries (CEE) in the EU questionable. The idea of the paper is that forms of foreign direct investment (FDI) have a differential effect on the growth and development of countries—i.e., it is assumed that FDI inflows into the manufacturing sector have a greater intensity and impact on economic growth than inflows into the services sector. Therefore, the aim of this paper is to analyze the system determinants and transmission mechanisms of the sectoral structure of FDI inflows on the sample of 10 CEE for the period 1995–2019. Following a critical analysis of previous research, a panel model was constructed in the empirical section. A developed credit market and the purchasing power of residents lead to greater capital inflows into the services sector, while a higher GDP growth rate and a depreciated real exchange rate lead to higher inflows into the manufacturing sector. The conclusion of the paper is that changing the structure of the domestic economy based on clear industrial and investment policies is the best way to attract developmentally efficient FDI.

Introduction: state structures, political processes, and collective choice in CMEA states

1986 ◽  
Vol 40 (2) ◽  
pp. 195-238 ◽  
Author(s):  
Ellen Comisso
Keyword(s):  
International Economic ◽  
Economic Assistance ◽  
Political Leaders ◽  
East European ◽  
Political Processes ◽  
The Past ◽  
Political Resources ◽  
Mutual Economic Assistance ◽  
Economic Strategies

The similarity of state structures throughout Eastern Europe helps to explain why the reactions of states in that area to the international economic disturbances of the past decade resemble each other and why they differ from those of states outside the socialist bloc. Similar state structures, however, do not explain why the economic strategies of the East European states themselves in response to international economic shocks in the 1970s and 1980s diverged so noticeably. The role of state structure is to define “kto/kovo” (who can do what to whom) relationships in the state and economy. In this way state structures define problems that political leaders must solve, possibilities among which they may choose, and political resources and allies upon which they may draw in the course of their decision making. In contrast, strategy choices–“what is to be done”–are the outcomes of political processes in which leaders mobilize resources and allies to capture positions of power from which they can pursue the purposes they advocate. Thus differences in foreign economic strategies among member states in the Council for Mutual Economic Assistance reflected differences in the dynamic interaction of the form and content of political processes that occurred within common state structures.

scholarly journals Corporate financialization in South Africa: From investment strike to housing bubble

2018 ◽  
Vol 22 (4) ◽  
pp. 413-436 ◽  
Author(s):  
Ewa Karwowski
Keyword(s):  
South Africa ◽  
South African ◽  
Trade Credit ◽  
Capital Inflows ◽  
Financial Assets ◽  
Price Inflation ◽  
Financial Flows ◽  
Financial Investment ◽  
Foreign Capital Inflows ◽  
Property Markets

This article reveals the processes of financialization in the South African economy by tracing the sources and destinations of non-financial corporations’ liquidity. The paper argues that rather than the volume of non-financial corporations’ financial investment, the composition of financial assets is crucial to assess corporate financialization in the country. Non-financial businesses in South Africa fundamentally transformed their investment behaviour during the 1990s, shifting from more productive uses such as trade credit towards highly liquid and potentially innovative (and therefore risky) financial investment. Following the direction of financial flows the article shows that companies’ financial operations – fuelled by foreign capital inflows – are linked to the price inflation in South African property markets.

scholarly journals International Digital Platform as a Tool for the Formation of Cross-Border Research, Educational and Innovation Spaces

2020 ◽  
pp. 46-51
Author(s):  
О. Vyshnevskyi ◽  
Keyword(s):  
Educational Organizations ◽  
Digital Platform ◽  
Eu Countries ◽  
Cross Border ◽  
Promising Tool ◽  
Research Organizations ◽  
Educational Spaces ◽  
Innovation Space ◽  
Two Stages ◽  
The Eu

The aim of the study is to substantiate design international digital platform as a tool for the formation of cross-border research, educational and innovation spaces. In the current conditions for Ukraine, the greatest potential for economic growth is contained in the innovation and institutional spheres. In turn, mass innovation is impossible without developed scientific and educational spheres, which are its basis. This necessitates the activation and acceleration of innovative, scientific and educational activities in Ukraine, that requires strengthening international cooperation. Among the main problems of the Ukrainian innovation, scientific and scientific space are their Weak integration into the European innovation space. This indicates the presence of untapped potential in this area. A promising tool for integrating Ukrainian innovation, scientific and educational spaces into the corresponding European ones is the creation of a international digital platform that unites governments, business, research organizations, consulting organizations, patent organizations, educational organizations from Ukraine and EU countries. The state of Ukraine has the opportunity to become the creator of such a platform, which can be done in two stages. At the first stage, initiate a platform to unite the Ukrainian innovation, educational and scientific space and one of the EU countries (for example, with Poland), and at the second, connect third countries from among the EU members.

scholarly journals Role of public government in cross-border cooperation

2018 ◽  
Vol 6 (5) ◽  
pp. 24-32
Author(s):  
T. V. Sokolska ◽  
S. P. Polishchuk
Keyword(s):  
Economic Development ◽  
Public Authorities ◽  
National Legislation ◽  
Eu Countries ◽  
Border Regions ◽  
Cross Border ◽  
International Projects ◽  
Cross Border Cooperation ◽  
The Eu

The article considers the role and place of public authorities in shaping the policy of effective cross-border cooperation between Ukraine and the EU taking into account the national interests.Particular attention is paid to the principles and features of territorial cooperation, taking into account the specifics of the EU’s external cooperation as well as the interests of the participating countries.The basic principles of the cooperation are determined on the basis of connections as well as contractual interregional and interstate relations, in compliance with the national legislation and respect for the international obligations of the states that are subjects of contractual relations; the thematic objectives are defined.The current state of Ukraine and the EU countries cross-border cooperation development is characterized and the main factors limiting this process are outlined. The most significant ones are the insufficient level of the national economic development and inconformity of the national legislation with European standards; lack of well-balanced management at the local level; the impossibility of implementing international projects of economic and social development due to ineffective management; lack of proper infrastructure; lack of marketing which aims to facilitate the existing resource potential of the border regions; sparking interethnic conflicts; the lack of skilled personnel in different spheres of establishing effective cooperation between the authorities, business and the public, etc. are also among them.Lack of sufficient financial resources and managerial powers in local administrations, in particular, for establishing the information infrastructure necessary for the cooperation with the authorities of the foreign countries regions and the development of financial projects is a specific problem of cross-border cooperation.The role of international projects and regional programs such as EU4Business, cross-border cooperation (Black Sea, Romania, Moldova, Hungary, Slovakia, Poland), EU programs, such as ERASMUS, HORIZON (61 projects amounting to 11.95 million euros were announced in 2016), COSME (May 2016) and their role in improving the socio-economic development of the border regions as well as solving common problems in ecology, health, safety and security, promoting the living conditions of citizens are grounded in the paper.The role of the united territorial communities (UTC) in cross-border cooperation activating, in particular their participation in international projects is grounded and the results of this activity in the Transcarpathia are presented. Insufficient level of professional training of public authorities representatives is pointed out. It is proved that cross-border cooperation is one of the main economic mechanisms of attracting foreign investments and grant funds for the economy modernization, for new jobs creation through the small business development, attraction of innovative technologies, access to the European market and the entry of Ukraine into the European community in the current economic situation.The expediency of working out the coherent effective state policy of cross-border cooperation with the EU, in which the legal, institutional and financial instruments should be clearly defined, along with the determined means of its implementation and mandatory public monitoring of the results is emphasized. The development of cross-border cooperation between Ukraine and the EU countries, ensuring a competitive economy running, the effective development of international trade, improvement of conditions and support of entrepreneurship, can be realized under the condition of implementation of the policy of public administration at the regional level.

scholarly journals Cross-border Movement of Patients in the eu: A Re-Appraisal

2017 ◽  
Vol 24 (4) ◽  
pp. 390-413 ◽  
Author(s):  
Clemens M. Rieder
Keyword(s):  
Welfare State ◽  
Legal Reasoning ◽  
Case Law ◽  
Cross Border ◽  
European Court ◽  
Specific Dimension ◽  
National Welfare ◽  
The Eu ◽  
The Welfare State ◽  
Cross Border Movement

Abstract The national welfare state, so it seems, has come under attack by European integration. This article focuses on one facet of the welfare state, that is, healthcare and on one specific dimension, that is, cross-border movement of patients. The institution which has played a pivotal role in the development of the framework regulating the migration of patients is the European Court of Justice (ecj). The Court’s activity in this sensitive area has not remained without critics. This was even more so since the Court invoked Treaty (primary) law which not only has made it difficult to overturn case law but also has left the legislator with very little room for manoeuvre in relation to any future (secondary) eu law. What is therefore of special interest in terms of legitimacy is the legal reasoning by which the Court has made its contribution to the development of this framework. This article is a re-appraisal of the legal development in this field.

The Soviet Union, CMEA, and the Energy Crisis of the 1970s

2020 ◽  
Vol 22 (4) ◽  
pp. 4-30
Author(s):  
Michael De Groot
Keyword(s):  
Soviet Union ◽  
Middle Eastern ◽  
World Market ◽  
Balance Of Payments ◽  
Economic Assistance ◽  
Market Prices ◽  
East European ◽  
The Soviet Union ◽  
Mutual Economic Assistance ◽  
Oil Crisis

Numerous scholars have claimed that the Soviet Union was a primary beneficiary of the 1973–1974 oil crisis. Drawing on archival evidence from Russia and Germany, this article challenges that interpretation, showing that the oil crisis forced Soviet policymakers to confront the limits of their energy industry and the effects of the crisis on their East European allies. Demand for Soviet energy outpaced production, forcing Soviet officials to weigh their need to compensate for economic shortcomings at home against their role as the guarantor of Communist rule in Eastern Europe. The Soviet decision to raise prices within the Council on Mutual Economic Assistance (CMEA) and the Soviet Union's inability to fulfill demand across CMEA compelled the East European governments to purchase oil from Middle Eastern countries at increasing world market prices, crippling their balance of payments and accentuating their other economic shortcomings.

CMEA: effective but cumbersome political economy

1986 ◽  
Vol 40 (2) ◽  
pp. 287-327 ◽  
Author(s):  
Michael Marrese
Keyword(s):  
Soviet Union ◽  
Political Stability ◽  
Economic Assistance ◽  
Economic Costs ◽  
Short Term ◽  
East European ◽  
The Soviet Union ◽  
Mutual Economic Assistance ◽  
Over Time

The Council for Mutual Economic Assistance is primarily a forum for bilateral bargaining between the Soviet Union and each of the other CMEA countries. The bilateral negotiations are conducted with tremendous concern for Soviet long-term preferences and for the short-term economic-political stability of East European countries. The CMEA provides the Soviet Union with an effective but cumbersome politico-economic policy-making apparatus that is becoming less effective and increasingly cumbersome over time. From the East European perspective, the CMEA tends to solidify the positions of the East European leaders yet generate long-term economic costs. What are the preferences upon which the CMEA is constructed? How are CMEA characteristics related to these preferences? What are the economic costs and benefits to member countries in static and dynamic terms? Why have costs for all member countries risen over time? How is intra-CMEA trade likely to change during the next decade?

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