Capital Flows to Transition Economies: Master or Servant

Lipschitz, Leslie; Mourmouras, Alex; Lane, Timothy

doi:10.5089/9781451842791.001

Cited by 68 publications

(46 citation statements)

References 16 publications

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“…During conflict, investment and saving decisions are disrupted, because of the magnitude of these problems in post-conflict economies (Demekas, McHugh & Kosma, 2002). Foreign investors take into account the main factors of the location choice such as terms of trade, institutional quality, foreign aid, exchange rate, transport costs (Bakhache, et al, 2006;Lipschitz, Lane & Mourmouras, 2002;. Thus, growth performance of risky business in the post-conflict economics and emerging markets are possible to evaluate (Campos & Kinoshita, 2003).…”

Section: Managing Cross-cultural Differentials Diminishes the Level Omentioning

confidence: 99%

Risky Business in Conflict Zones: Opportunities and Threats in Post Conflict Economies

Hacıoğlu¹,

Çelik²,

Dınçer³

2012

AJBM

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Attracting international businesses and enterprises to transfer both resources and capabilities into post conflict economies is a must for sustaining long term stability, economic growth and success of recovery process. Recently, international business organizations operating in post-conflict countries became more integrated with recovery and transition process of post conflict economies. In this study, the opportunities and threats for international firms operating in post conflicted economies have been evaluated based on literature review. This study also demonstrates that (1) investment opportunities in transition economies are attractive for short and mid-term, (2) capturing undervalued firms, accessing unique marketplace, benefiting incentives, accessing IMF's and the World Bank's low cost credit resources and having a good reputation via contributing into stability and peace are just some of the major advantage (3) the loss of control and capital attached to the risk of unstable political conditions, the possibility of high ethnic tensions and violent riots, the lack effective corporate culture and high burden of inside conflicts, the lack of sustainable economic growth and the risk of new tax packages have negative impacts on long term success for the firms (4) the conflict risk itself is major problem dissolving investment conditions.

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Section: Managing Cross-cultural Differentials Diminishes the Level Omentioning

confidence: 99%

Risky Business in Conflict Zones: Opportunities and Threats in Post Conflict Economies

Hacıoğlu¹,

Çelik²,

Dınçer³

2012

AJBM

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“…These economies account for a sizable share of the G-11 countries. Indeed, a few years ago, empirical studies estimated that the potential future equilibrium capital inflows for Central and Eastern European countries could exceed their GDP by several times (Lipschitz et al, 2002), while bank credit would rise rapidly relative to GDP from a low base (Cottarelli et al, 2003). Updated estimates of the equilibrium bank credit to the private sector suggested that most G-11 countries still had considerable room to expand, provided that global liquidity conditions remained favorable (Figure 3).…”

Section: A Recent Experience and Stylized Factsmentioning

confidence: 99%

One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows

Zakharova

2008

IMF Working Papers

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“…This type of capital flow represents opportunity to reduce technological gap between transition and developed countries. It is seen as useful factor for convergence and catching up, whose impact strongly depends on quality of domestic policy management (Lipschitz et al, 2001). For instance, Hudea and Stancu (2012) argue that FDI makes a greater contribution to the income growth of countries which implement comprehensive privatization programmes.…”

Section: Introductionmentioning

confidence: 99%

Institutions as a Mediator of the Effect of Crossborder Mergers & Acquisitions on Domestic Investment

Lobanova¹,

Kračun²,

Kavkler³

2018

Prague Economic Papers

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In this article we analyse the impact of the interaction between cross-border mergers and acquisitions and the quality of the institutional setting on domestic investment using panel data for 22 European transition countries from 2000 to 2014. We investigate whether the progress and durability of institutional reforms have a crucial influence on the economic performance of crossborder mergers and acquisitions in transition countries. Our empirical findings indicate that contemporaneous cross-border mergers and acquisitions have a crowding-out effect on domestic investment in the year of merger or acquisition, but the influence of their lagged level has a strong crowding-in effect one year later. We find that the overall quality of the institutional setting and the rule of law negatively and significantly affect the relation between this type of foreign direct investment and domestic investment, both in the short and long run. Political stability exhibits a positive and significant impact on domestic investment in the current period and over time.

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Capital Flows to Transition Economies: Master or Servant

Cited by 68 publications

References 16 publications

Risky Business in Conflict Zones: Opportunities and Threats in Post Conflict Economies

Risky Business in Conflict Zones: Opportunities and Threats in Post Conflict Economies

One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows

Institutions as a Mediator of the Effect of Crossborder Mergers & Acquisitions on Domestic Investment

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