Foreign direct investment in the financial sector and economic growth in Central and Eastern Europe: The crucial role of the efficiency channel

An Empirical Analysis of Stock Market Development and Economic Growth: The Case of Macedonia

“…At the same time, Mehl, Vespro and Windler (2006) found that financial deepening had no significant effects on the growth of South-Eastern European countries for the period 1993-2003. Other relevant studies include Masten, Coricelli and Masten (2008), who investigated the relationship between financial integration and economic growth in a sample of European countries for the period 1996-2004, and Eller, Haiss, and Steiner (2006, who examined the impact of financial sector and foreign direct investment on economic growth for 11 Central and Eastern European countries in the period 1996-2003.…”

Foreign direct investment and economic growth in Zimbabwe: a dynamic causality test

“…Their study found out that later-stage FSFDI was more beneficial to economic growth and development in Central and Eastern Europe when compared with the earlier stages of FSFDI. Eller et al (2006) found that beyond a certain threshold of economic development, the crowding out, of local physical capital caused by the entry of foreign banks seemed to have hampered economic growth in Central and Eastern Europe. Vita and Kyaw (2009), in their study, found results that were similar to those of Eller et al (2006).…”

“…Eller et al (2006) found that beyond a certain threshold of economic development, the crowding out, of local physical capital caused by the entry of foreign banks seemed to have hampered economic growth in Central and Eastern Europe. Vita and Kyaw (2009), in their study, found results that were similar to those of Eller et al (2006). Their research revealed that only countries whose economies have reached a minimum level of economic development and absorptive capacity can capture the economic growth-enhancing effects of FDI investment inflows.…”

“…In order to benefit from the technological spillovers of FDI, so as to persistently promote economic growth, host countries should design good institutes and infrastructure (Wang and Xie, 2004). Moreover, Eller et al (2006) revealed that the impact of financial sector foreign direct investment (FSFDI) on economic growth depends on the stage of economic development of the host country. Their study found out that later-stage FSFDI was more beneficial to economic growth and development in Central and Eastern Europe when compared with the earlier stages of FSFDI.…”

Interaction between foreign financial services and foreign direct investment in Transition Economies: An empirical analysis with focus on the manufacturing sector

“…Further on, the recent empirical literature shows that foreign banks increase the efficiency of the local economy. Eller, Haiss and Steiner (2006) use foreign banks as an important determinant of total factor productivity growth. Alfaro, Chanda, Kalemli-Ozcan and 1 Sayek (2004) find that the development of the local financial system crucially affects the positive effect of FDI on growth.…”