scholarly journals Empirical Verification of the Occurrence of Lucas Paradox in the Region of Central – Eastern Europe

2021 ◽  
Vol 1 (29) ◽  
pp. 7-17
Author(s):  
Agata Maria Górniak
Keyword(s):  
Eastern Europe ◽  
Capital Flows ◽  
International Capital Flows ◽  
The European Union ◽  
International Capital ◽  
Neoclassical Theory ◽  
Random Effects Models ◽  
Central Eastern Europe ◽  
Central Eastern ◽  
The Impact

The purpose of this article is to study the occurrence of the Lucas paradox in the region of Central-Eastern Europe. According to the research conducted by Robert Lucas (1990), the direction of the international capital flows is different than the neoclassical theory suggests. The capital does not flow from the richer, high-income economies to the poorer, but rather stays in those with the higher capital resources or flows to the other ones with similar level of GDP. The paper verifies whether the paradox appears in the region, in the way that it examines the impact of the GDP on the FDI inflows. Additionally, the study implements few basic models with factors that may potentially resolve the puzzle of the capital flows. The study method is based on panel data estimations, initially using pooled OLS, and subsequently using fixed or random effects models as appropriate. The examined economies are the member states of the European Union, from the region of Central-Eastern Europe, and the examined years are 2000-2018. Based on the literature, and the widely emphasized need for differentiating between the types of international capital flows, the article focus is on the foreign direct investment only, as they constitute large part of the whole global capital flows. Results of the research confirm the presence of the paradox in the region in the examined period. Even though the estimation of the additional models helps to remove the effects of the paradox for the region, it does not fully explain under which circumstances the neoclassical theory would be applicable. None of the applied models reverses the sign of the GDP variable to negative, keeping it statistically significant at the same time.

scholarly journals THE IMPACT OF THE INSTITUTIONAL FRAMEWORK QUALITY ON THE OWNERSHIP STRATEGY. EVIDENCE FROM EU FOREIGN DIRECT INVESTMENTS IN SOUTH AND CENTRAL EASTERN EUROPE

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Constantinos CHOROMIDES
Keyword(s):  
Eastern Europe ◽  
Multinational Enterprises ◽  
Transitional Economies ◽  
Foreign Direct Investments ◽  
The European Union ◽  
Central Eastern Europe ◽  
Ownership Strategy ◽  
Central Eastern ◽  
The Impact

Foreign Direct Investment (FDI) is considered by scholars as a critical factor for economic growth and development. The recent economic crisis in the European Union (EU) has brought up again the discussion of the key drivers specific to the attraction of FDI. In addition to strict economic factor, the literature emphasises the role of institutions in a country as determinants in attracting FDI inflows. This study is one of the first to address the ownership strategy of multinational enterprises from the EU region undertaking FDI in former transitional economies in South (SEE) and Central Eastern Europe (CEE) using the concept of the quality of institutions. An analysis of the impact that the quality of market supporting institutions in determining ownership structure has of foreign affiliates in former transitional economies is attempted using an econometric model on institutional, regulatory, country specific and company level data based on a sample of 285 EU companies undertook FDI in 4 South and Central Eastern European countries during 1995-2015. We apply and advance the institution-based view of strategy by integrating it with resource-based and transaction cost considerations, incorporating three of the most important theoretical paradigms of international business studies.

scholarly journals Central-Eastern Europe in Post-COVID-19 International Politics

2020 ◽  
Vol 18 (2) ◽  
Author(s):  
I. Kobrinskaya ◽  
◽  
B. Frumkin ◽  
Keyword(s):  
European Union ◽  
Eastern Europe ◽  
Political Development ◽  
Global Economy ◽  
World Politics ◽  
The European Union ◽  
Central Eastern Europe ◽  
Central Eastern ◽  
The Impact ◽  
The Eu

The article is based on the hypothesis about the transition of the development of international processes from the stage of uncertainty to the stage of the negative certainty – the increase and synergy of the impact of negative factors in the environmental, climatic, epidemiological, socio-economic, technological, and security spheres against the background of worsening geopolitical contradictions and confirmed by the crisis caused by the COVID19 pandemic. The article examines the dynamics of socio-economic and political development and the changing role of the Central-Eastern European region. Having strengthened their positions in the European Union through adaptation to EU policies and norms, by the mid-2010s the CEE countries began to pursue an increasingly independent course. By 2020 their policy became one of the factors hindering the further deepening of the EU integration, primarily in the foreign policy sphere, and the process of federalization of the Union. The analysis of the state of public opinion conducted in the article testifies to the dualism of the perception of citizens of the CEE countries of the EU membership. High support for the EU is combined with frustration at the partial loss of national sovereignty, which is actively used by nationalist political forces in the region. During the early months of COVID-19 pandemics the countries of the region performed better than the EU as a whole, which created prerequisites for reformatting the position of the CEE countries in the EU. The enormous resources provided by the EU to Central-Eastern Europe to overcome the crisis and move towards sustainable development serve as a tool for even deeper economic and political integration of the CEE into the EU. Conditionality of support for the implementation of the EU strategies could have an impact on the CEE countries that is very similar to the period of their accession to the integration grouping and lead to the next stage of desovereignization. Meanwhile, for the European Union closer binding of the CEE countries allows not only to take another step towards federalization, but also to strengthen its actorness in world politics and the global economy.

scholarly journals Analysis on the Impact of Short-Term International Capital Flows on Chinese Stock Market on the Basis of VAR Model

2018 ◽  
Vol 10 (8) ◽  
pp. 77
Author(s):  
Ning Wu
Keyword(s):  
Stock Market ◽  
Capital Flows ◽  
Composite Index ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Var Model ◽  
Chinese Stock Market ◽  
International Capital ◽  
Short Term ◽  
The Impact

With the continuous development of global economic integration and financial markets, international capital flows more and more frequently, the frequent flow of international capital will inevitably affect the yield of Chinese stock market. This article uses short-term international capital inflows SS and Shanghai composite index R as research objects. Based on monthly data from January 2002 to October 2017, VAR model was constructed using Eviews8.0 to study the impact of short-term international capital flows on Chinese stock market. Empirical studies have found that short-term international capital flow is the granger cause of changes in the Shanghai composite index yield, while the yield of Chinese stock market will not affect short-term international capital flows. At the end of this paper, relevant suggestions are put forward according to the conclusions.

Canadian Economic Policy and the Impact of International Capital Flows

1970 ◽  
Vol 3 (4) ◽  
pp. 655
Author(s):  
James R. Williams ◽  
Richard E. Caves ◽  
Grant L. Reuber ◽  
William H. Branson
Keyword(s):  
Economic Policy ◽  
Capital Flows ◽  
International Capital Flows ◽  
International Capital ◽  
The Impact

scholarly journals The Impact of International Capital Flows on Jordan’s Economic Growth

2019 ◽  
pp. 214-220
Author(s):  
Basem M. Lozi ◽  
Mamoun Shakatreh
Keyword(s):  
Economic Growth ◽  
Capital Flows ◽  
Time Series Data ◽  
Developed Countries ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Series Data ◽  
International Capital ◽  
The Government ◽  
The Impact

The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.

State-led violence in Ukraine’s 2004 elections and orange revolution

2010 ◽  
Vol 43 (4) ◽  
pp. 383-395 ◽  
Author(s):  
Taras Kuzio
Keyword(s):  
European Union ◽  
Eastern Europe ◽  
Ethnic Conflict ◽  
External Support ◽  
The European Union ◽  
Security Forces ◽  
Central Eastern Europe ◽  
Orange Revolution ◽  
Central Eastern ◽  
Second Wave

The Ukrainian opposition faced one of the greatest degrees of state-backed violence in the second wave of democratization of post-communist states with only Serbia experiencing similar cases of assassinations and repression of the youth Otpor NGO. In the 2004 Ukrainian elections the opposition maintained a strategy of non-violence over the longest protest period of 17 days but was prepared to use force if it had been attacked. The regime attempted to suppress the Orange Revolution using security forces. Covert and overt Russian external support was extensive and in the case of Ukraine and Georgia the European Union (EU) did not intervene with a membership offer that had the effect of emboldening the opposition in Central-Eastern Europe. This article surveys five state-backed violent strategies used in Ukraine’s 2004 elections: inciting regional and inter-ethnic conflict, assassinations, violence against the opposition, counter-revolution and use of the security forces. The article does not cover external Russian-backed violence in the 2004 elections unique to Ukraine that the author has covered elsewhere.

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