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.

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.

scholarly journals The Determinants Of European Union (EU) Foreign Direct Investments In The EU Countries From Central And Eastern Europe During 1994–2012

2017 ◽  
Vol 20 (1) ◽  
pp. 75-99 ◽  
Author(s):  
Donny Tang
Keyword(s):  
Stock Market ◽  
Market Integration ◽  
Large Scale ◽  
Banking Sector ◽  
Bank Credit ◽  
Market Size ◽  
Foreign Direct Investments ◽  
Eu Countries ◽  
Positive Effect ◽  
The Eu

This study examines whether the CEECs’ financial market development can explain the EU FDI in the CEECs during 1994–2012. The higher bank credit flows had a positive effect on the FDI in 2005–2012. This can be attributed to the major banking sector reforms undertaken before the CEECs’ EU accession. Second, the stock market size had a positive effect in 1997–2004. This is due to the fact that the EU membership announcement facilitated deeper stock market integration. Third, the higher country income, in interaction with a higher bank credit flow, had only a small positive effect in 2005–2012. The higher income CEECs have pursued much deeper bank liberalization through large-scale privatization of state-owned banks. Finally, the higher country income, in interaction with a larger stock market size, had a negative effect in 2005–2012. A possible reason for this is that the EU countries have started to divert their new FDI to the non-EU countries.

scholarly journals Impact of FDI Inflows on Export and Growth of an Indian Economy

2019 ◽  
Vol 8 (2S10) ◽  
pp. 228-232
Keyword(s):  
Export Performance ◽  
National Income ◽  
Capital Inflows ◽  
Gdp Growth ◽  
Foreign Direct Investments ◽  
Specific Level ◽  
Fdi Inflows ◽  
Indian Economy ◽  
Globalizing World ◽  
Gdp Growth Rate

FDI may be reflected as a resource for developing countries to get capital inflows, access to foreign technology, management skills and marketing networks. India is the world’s highest rising economies and remains a top market for Foreign Direct Investments (FDI). In a globalizing world, export success can serve as much for the competitiveness of a country’s industry and lead to faster growth. India is the most primary economies globally for foreign investment. It allows FDI of up to 100 percent of the equity shareholding in most sectors under the automatic route. The inflow of FDI into India is projected as able to increase productivity which will ultimately have an impact on the increase in national income in the form of the Gross Domestic Product (GDP) as well as in the form of increased exports. Exports support a country to increase its foreign exchange reserves, and build a strong financial position. FDI is seen as a potent tool of export promotion in the domestic country. This paper examines the most important benefits connected with the inflow of FDI as Export Performance, and GDP Growth. To study the dynamics of co-integration between FDI Inflow, GDP growth, and Export Performance, evidence is taken from country-specific level like Indian Economy where the period of study is from 2009-10 to2018-19. Hence, the paper studies the economic scenario of India for its FDI inflows, GDP growth rate, and its export performance. This paper attempt to analyze a positive correlation between FDI Inflow, GDP growth, and Export Performance by framing Simple Regression and Multiple Regression Models erected on the hypotheses formulated and validating the results of the models based on ANOVA and Durbin-Watson test.

scholarly journals Productivity Performance of the Service Sectors in European Union Countries

2019 ◽  
Vol 22 (4) ◽  
pp. 7-22
Author(s):  
Joanna Wyszkowska‑Kuna
Keyword(s):  
Productivity Growth ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Factor Productivity ◽  
New Member States ◽  
Eu Countries ◽  
Tfp Growth ◽  
Service Sectors ◽  
Communications Services ◽  
The Eu

Economic development has resulted in structural transformation towards economies based on services, which has raised some concerns about the limited opportunities for sustaining productivity growth. The aim of this paper is to examine total factor productivity (TFP) growth in the service sector in comparison with total industries and the manufacturing sector, as well as within the service sector. The study is based on the data from the EU‑KLEMS database (2017), and it covers the years 1995–2015. It refers to EU countries, making it possible to carry out a comparative analysis between countries, in particular between the ‘old’ and ‘new’ member states. The study demonstrates that productivity growth in services was significantly lower than in manufacturing, but compared with total industries, the disparity was not significant. Productivity growth was usually higher in the ‘new’ EU countries than in the ‘old’ ones, except for information and communications services, which, on the whole, were the main driving force behind the productivity growth in services.

scholarly journals Milk Market Integration between Poland and the EU Countries

Agriculture ◽  
2020 ◽  
Vol 10 (11) ◽  
pp. 561
Author(s):  
Monika Roman ◽  
Michał Roman
Keyword(s):  
Market Integration ◽  
Raw Milk ◽  
Agricultural Products ◽  
Eu Countries ◽  
Milk Market ◽  
The Eu

Milk is one of the most essential agricultural products in the EU. One of the major milk producers in the EU is Poland. Polish farmers account for supplying 8% of the total EU production. Nevertheless, Polish milk prices differ from the prices recorded in its western neighbors. The aim of the article has been to evaluate the dynamics of the relationships between milk prices in Poland and in the EU countries. To develop it, the monthly raw milk prices, covering the period January 2005 through December 2018, were applied. The calculations were made for the entire selected period as well as for two sub-periods: 2005–2011 and 2012–2018. The results were used to confirm the milk market integration between Poland and the EU countries. Besides, it must be noted that the relations increased considerably since 2012. The EU countries which have recorded the greatest impact on the prices in Poland are Germany, Ireland, France and Slovakia.

scholarly journals Zatrudnienie i wartość dodana brutto w sektorach gospodarki państw Unii Europejskiej w latach 2002 i 2016

2018 ◽  
Vol 18(33) (4) ◽  
pp. 270-283
Author(s):  
Włodzimierz Kołodziejczak
Keyword(s):  
Rural Areas ◽  
Structural Adjustment ◽  
Labour Force ◽  
Value Added ◽  
Structural Transformations ◽  
The Other ◽  
The European Union ◽  
Services Sector ◽  
Sectoral Structure ◽  
The Eu

The aim of the paper is to recognize the level of employment and gross value added in the agriculture against the other sectors of the economy in the European Union. Comparative analysis and method of deduction were used in the study. The research was based on the EUROSTAT data from the years of both 2002 and 2016. The “surplus” of employment in the agriculture in the post-socialist countries in relation to the EU average approximately corresponds to the “shortage” of employment in services. The process of changes in the sectoral structure of employment will probably be determined by the growth rate of demand for services, structural adjustment referring to matching the characteristics of the agricultural population to the demand for labour force in the services sector and the pace of structural transformations in rural areas.

scholarly journals Accident Risk in the Production Sector of EU Countries—Cohort Studies

2021 ◽  
Vol 18 (7) ◽  
pp. 3618
Author(s):  
Krzysztof Nowacki
Keyword(s):  
Occupational Safety ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Individual Member ◽  
Accident Risk ◽  
Work Safety ◽  
Production Sector ◽  
Eu Countries ◽  
Remedial Actions ◽  
The Eu

(1) Background: accident rates prove the uneven development of the member countries in the area of work safety. Remedial actions and structural programmes should take into account, e.g., the level of work safety in all European Union (EU) countries. Aim: the identification of differences in the level of work safety in the production sector of EU countries, especially the so-called “old” and “new” EU countries. (2) Methods: for each country UE (in 2008–2018), the relative risk (RR) of an accident at work was determined and a comparative analysis was conducted. (3) Results: an increase in the RR of an accident at work was observed along with an increase in the GDP of a given country. It was found that the level of occupational safety in Sweden and the United Kingdom is higher than in other countries, and lower in Spain and Portugal. In the three largest economies of the EU, Germany, France, and Italy, the RR of the accident in the industrial sector in relation to the national data is one of the lowest in the entire EU, not exceeding 1.3. In The Netherlands, an increase of 1.7 RR of fatal accidents in the industrial sector was observed between 2008 and 2018. (4) Conclusions: RR in the manufacturing sector of the so-called “old” EU is higher than in the so-called “new” EU, which may result from the implementation of Industry 4.0 assumptions in the “old” EU. The presented results and conclusions may be useful in shaping the EU policy in the field of sustainable development of production sectors of individual member countries.

scholarly journals Relationship Between Economic Climate and the Level of Barriers to Doing Business in the Services Sector in the EU Countries

2021 ◽  
Vol 16 (2) ◽  
pp. 240-248
Author(s):  
Robert Skikiewicz
Keyword(s):  
Cross Correlation ◽  
Growth Cycle ◽  
Services Sector ◽  
Eu Countries ◽  
Doing Business ◽  
Cyclical Fluctuations ◽  
Economic Climate ◽  
Cross Correlation Analysis ◽  
The Business Cycle ◽  
The Eu

Abstract Development of the whole economy and sectors of the economy is influenced by cyclical fluctuations, what can be observed as slowdown or acceleration of the economic processes. The identification of the leads and lags between the economic indicators, that reveals cyclical fluctuations is very important. The paper attempts to diagnose the lead and lag relationship between the economic sentiment indicators and the indicators of barriers to doing business in the services sector. The growth cycle approach was applied in the paper. A cross correlation analysis was conducted to identify the lead / lag relationship between the variables. The results of the analysis enable to conclude if the confidence indicator is a leading or lagged indicator and what is the length of lead / lag in relation to the indicators of barriers to doing business in the services sector in the EU countries. The study indicate the number of quarters from the peak or through of the business cycle in the services sector after that the level of factors limiting business activity will start to grow or drop. The results of the study can be useful both to the managers of firms as well as the governments.

scholarly journals The Competitiveness of the European ICT Industry

2018 ◽  
Vol 10 (1) ◽  
pp. 97-119
Author(s):  
Dimitris Psychoyios ◽  
George Dotsis
Keyword(s):  
Production Efficiency ◽  
Manufacturing Sector ◽  
Labour Productivity ◽  
Policy Implications ◽  
Main Hypothesis ◽  
Services Sector ◽  
Ict Industry ◽  
The Empirical Analysis ◽  
D Investment ◽  
The Eu

This paper investigates the international competitiveness of the European ICT sector. We use Labour productivity, R&D expenses and trade performance as proxies of competitiveness. The empirical analysis of 39 countries between 1999 and 2004 confirms our main hypothesis that the EU is performing better in the ICT services industry relative to manufacturing. In general, the average EU production efficiency is larger in the services sector, than in manufacturing. The study has important policy implications. Appropriate policies should be implemented – especially in the ICT manufacturing sector – for making EU more competitive in “non- price factors”, such as policies that facilitate the transformation of R&D expenses into product innovation. There are clearly areas for improvement in the way R&D is carried out in the ICT sector within the EU, with respect to both the allocation of R&D investment and the process of producing results from R&D.

scholarly journals Romanian immigrants and the inflows of foreign direct investment towards Romania

2018 ◽  
Vol 13 (4) ◽  
pp. 1226-1241
Author(s):  
Monica Roman ◽  
Vasile Alecsandru Strat
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Methodological Approach ◽  
Foreign Investments ◽  
Fdi Inflows ◽  
Eu Countries ◽  
Several Variables ◽  
Romanian Immigrants ◽  
The Eu

Abstract The answer to the following question summarizes the research presented in this manuscript: “Are Romanian immigrants in the EU countries enhancing the foreign direct investment (FDI) inflows towards Romania?”, and as a consequence it makes the results of the paper a useful tool for all Romanian authorities dealing with one of the two topics: migration and foreign investments. To our knowledge, the paper provides the initial evidence supporting the hypothesis that Romanian immigrants in the EU countries can be regarded as “ambassadors” of the Romanian economy in attracting FDI (to Romania) from their adoption countries. The methodological approach relies on econometric modelling which reveals a positive and statistically significant relationship between the stock of immigrants and the number of FDI firms located in Romania and sourced from 15 EU economies, when controlling for several variables. The results could be useful both for companies and for Romanian policymakers that should target as source for potential foreign capital the economies which attract important flows of Romanian immigrants.

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