Foreign Direct Investment in Central Europe Since 1990: An Econometric Study

Lansbury, Melanie; Pain, Nigel; Šmídková, Kateřina

doi:10.1177/002795019615600109

Cited by 109 publications

(59 citation statements)

References 10 publications

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“…The simple relationship between the increase in the stock of FDI and improvements in the trade balance in goods is suggestive -countries with high levels of FDI accumulation export more than those with low levels of FDI accumulation, see figure 2. This hypothesis is consistent with previous empirical work related to foreign direct investment in transition countries (Lansbury et al, 1996, andBenáček et al, 2003).…”

Section: Introductionsupporting

confidence: 93%

Sustainable exchange rates when trade winds are plentiful

Babecky¹,

Bulir²,

Smidkova

2008

National Institute Economic Review

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Estimation and simulation of sustainable real exchange rates in a sample of EU member countries find vulnerabilities connected to the adoption of the euro if the rate vis-à-vis the euro were to be fixed with weak fundamentals and inappropriate policies. Sample countries have benefited from dramatic improvements in their external positions, in part driven by inflows of foreign direct investment. As a result, exchange rate misalignments have narrowed in most countries and, looking ahead, are expected to narrow further. These results are conditional, however, on optimistic projections with respect to world import demand and foreign direct investment inflows.

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Section: Introductionsupporting

confidence: 93%

Sustainable exchange rates when trade winds are plentiful

Babecky¹,

Bulir²,

Smidkova

2008

National Institute Economic Review

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“…Initially, empirical studies for those countries were conducted treating all the countries in the whole region jointly. Examples of such studies include Lansbury et al (1996), Brenton et al (1999), Benacek et al (2000), Resmini (2000), Garibaldi et al (2001), Bevan and Estrin (2004), Carstensen and Toubal (2004), Cieślik and Ryan (2004), Baniak et al (2005), Gorbunova et al (2012), and most recently also Wach and Wojciechowski (2016). Subsequently, studies for individual CEECs started to appear.…”

mentioning

confidence: 99%

Determinants of MNE Activity in Poland: The Case of Firms from EU-15

Cieślik

2017

EBER

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A B S T R A C T Objective:The main purpose of this paper is to validate empirically the theoretical predictions of the modified knowledge capital model of multinational enterprise and identify the main reasons for undertaking international production in Poland by foreign firms from the EU-15 countries. Research Design & Methods: Our theoretical framework refers to the physical capital augmented knowledge capital model that combines both horizontal and vertical reasons for foreign direct investment. The empirical implementation of the theoretical framework is based on the negative binomial model and the bilateral dataset covering 15 old EU member states over the period 1989-2014 which yields a total of 390 observations. Findings: Our estimation results indicate that the extent of multinational activity in Poland is positively related to both differences in relative factor endowments and similarity in the relative country size which confirms the importance of both reasons for undertaking foreign direct investment in Poland. Implications & Recommendations:The empirical evidence confirms the predictions of the modified knowledge capital model and points to the horizontal as well as vertical motives for undertaking foreign direct investment in Poland. These findings suggest that government should not try to attract only one type of FDI. Contribution & Value Added: The originality of this work lies in the empirical implementation of the theoretical framework that allows distinguishing between horizontal and vertical reasons for foreign direct investment. Article type: research paper

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“…On average, the nominal appreciation was 6.6 per cent between 1992 and 2003 and 12.6 per cent during 1992 -1997. We see FDI as the main culprit in explaining the real exchange rate appreciation in the four newcomers, which is otherwise at odds with alternative explanations such as the Balassa-Samuelson and external-wealth accumulation effects. The previous empirical work related to FDI in the former transition countries (see Lansbury, Pain, Šmídková, 1996) supports this view. Prior to the EU enlargement, the four newcomers accumulated FDI at an admirable level of 25 per cent of GDP on average (Figure 2).…”

Section: )mentioning

confidence: 60%

Would Fast Sailing Towards the Euro Be Smooth? What Fundamental Real Exchange Rates Tell Us

Šmídková¹,

Bulı́ř²

2005

Prague Economic Papers

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Abstract:Computed fundamental real exchange rates in four new EU members point to difficulties in jointly entering the ERM II soon after the EU entry. Three currencies out of the four were overvalued prior to EU entry. Computations suggest that it is unlikely that the Czech, Hungarian and Polish economies will maintain low inflation during 2004 -2010 and at the same time keep their currencies within the ERM II easily. Moreover, the experience of Greece, Portugal and Spain -viewed through fundamental real exchange rate goggles -indicates more stable real exchange rate paths and smaller currency misalignments prior to euro adoption than can be expected from the newcomers in the forthcoming years. If the newcomers sail too fast towards the euro, their sailing may not be as smooth as that of the front runners.

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Foreign Direct Investment in Central Europe Since 1990: An Econometric Study

Cited by 109 publications

References 10 publications

Sustainable exchange rates when trade winds are plentiful

Sustainable exchange rates when trade winds are plentiful

Determinants of MNE Activity in Poland: The Case of Firms from EU-15

Would Fast Sailing Towards the Euro Be Smooth? What Fundamental Real Exchange Rates Tell Us

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