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

Cazzavillan, Guido; Olszewski, Krzysztof

doi:10.1016/j.rie.2012.08.001

Cited by 16 publications

(4 citation statements)

References 23 publications

(11 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…FDI into services might be motivated by labour costs (Kolstad | Villanger 2008) or developed human capital (Ramasamy | Yeung 2007). To continue, FDI into the financial sector is negatively affected by inflation (Cazzavillan | Olszewski 2012).…”

Section: Review Of the Literaturementioning

confidence: 99%

Impact of dividends and capital intensity of labour on real wages in post-communist economies

Pikhart,

Procházka

2023

View full text Add to dashboard Cite

This paper aims to verify gains and losses from foreign direct investment as well as outflow of capital in the form of dividends from Central and Eastern Europe. The topic of dividend outflow is currently at the centre of political as well as media interest. At the same time, it is prone to simplistic interpretations and possible political intervention might exert a significant negative social impact. The contemporary economic theory and empirical research are in relative consensus on the positive effects of foreign investment. Most notably, it increases capital endowment of labour. However, the questions that have not yet been resolved are the rate of intensity, phases and channels of foreign capital flows. The effect of foreign investment during the different phases of foreign life-cycle is practically unexplored. The need for this type of research does not arise in Western Europe’s economies as they are in a position of creditor compared to Central and Eastern Europe. Therefore, the article examines whether the outflow of dividends is associated with the deterioration of aggregate demand or an increase of export capacities. Through the panel regression method, these relationships are captured in Western Europe’s economies and compared with the Central and Eastern Europe’s economies. The effect of capital intensity and dividend outflow on real wages in the post-communist countries was examined. The findings break down the myth portrayed in the media concerning the cost of dividend outflow and, on the contrary, they confirm substantial benefits stemming from the capital inflow. Late stages of foreign investment cycle connected with dividend outflow do not bear any adverse effects. The high profitability of foreign-controlled enterprises is in line with the favourable wage development of domestic labour force.

show abstract

Section: Review Of the Literaturementioning

confidence: 99%

Impact of dividends and capital intensity of labour on real wages in post-communist economies

Pikhart,

Procházka

2023

View full text Add to dashboard Cite

show abstract

“…In order to achieve this, the necessary condition is to attract foreign direct investments (Domazet & Marjanović, 2017). The effect of foreign direct investment (FDI) and its short-run determinants are quite well studied, both in theoretical and empirical sense (Cazzavillan & Olszewski, 2012). Foreign direct investment is a form of investment aimed at increasing the efficiency of multinational companies, on the one hand, and helping the development of a national community, on the other (Aizenman et al, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Утицај Пореских Олакшица На Пословање Страних Инвеститора У Србији

Marjanović¹,

Domazet²,

Šimović³

2020

TEME

View full text Add to dashboard Cite

Tax incentives granted to foreign investors play the leading role in the process of attracting foreign investments. The aim of this paper is to determine how individual tax exemptions affect the operations of foreign investors in Serbia. In order to determine this, we conducted a survey through which the views of foreign investors, expressed through their opinions, perceptions and expectations when it comes to their investment in Serbia, were collected. The main focus of the work is on tax incentives in certain areas, intended for the operation of foreign investors in Serbia, and depending on the amount of investment. The methodology of empirical research, based on the quantitative approach, enabled the collection of numerical data, their mutual comparison, as well as the exploration of connections between them. Based on the results obtained it is possible to conclude that tax incentives are very important to foreign investors when choosing Serbia as an investment destination. The results that have been achieved through the research may be of relevance to the fiscal policy makers in Serbia, since it is of the utmost importance that even more favorable conditions for foreign investors are ensured in the forthcoming period.

show abstract

“…According to Cazzavillan & Olszewski (2012), non-financial FDI is positively affected by financial services FDI and by market potential and FDI crowds out domestic investment in the manufacturing sector. According to Li & Tanna (2019) FDI has a strong and positive impact on TFP (total factor productivity) growth after accounting for the roles of human capital and institutions.…”

Section: Literature Reviewmentioning

confidence: 99%

Western Balkan countries as an attractive investment destination

Marjanović,

Đukić

2020

View full text Add to dashboard Cite

Foreign direct investments are potentially very important for each country as they could significantly contribute to its economic development. The importance of foreign direct investments reflects in their ability to contribute to development of comparative advantages and competitiveness. In the last 20 years, WB countries have tried to attract as many foreign investors as possible using various policy incentives. Foreign direct investment inflows followed the pace of economic transformation and reforms towards a market economy, leading to economic growth. The aim of this paper is to analyse characteristics of the inflow of foreign direct investments in the Western Balkans (WB) countries, as well as the impact they might have on their economic growth and development. In order to determine the amount of foreign direct investments, but also the position, ie. competitiveness of each of the observed countries, there have been used secondary data from the official UNCTAD reports. The paper will also present an analysis of the greenfield investments for selected economies, as very important type of foreign investments that probably have the largest positive spillovers. The time period covered by this research was from 2010 to 2019. The results of the conducted research indicate that Serbia is the most attractive investment destination, considering that in the observed period, more than 60% of the total amount of foreign direct investments that were directed to the countries of the Western Balkans ended up on its territory.

show abstract

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

Cited by 16 publications

References 23 publications

Impact of dividends and capital intensity of labour on real wages in post-communist economies

Impact of dividends and capital intensity of labour on real wages in post-communist economies

Утицај Пореских Олакшица На Пословање Страних Инвеститора У Србији

Western Balkan countries as an attractive investment destination

Contact Info

Product

Resources

About