Foreign Direct Investments In The Financial Sector

Topics:
Foreign Direct Investment
Tags:
Currency & Foreign Exchange,
Vienna University,
Operational Accounting,
Mergers & Acquisitions,
Investment,
Human Resources,
Human Capital,
Growth,
FSFDI,
Foreign Direct Investment (FDI),
...
Source:
Vienna University

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Overview: This paper examines the impact of Financial-Sector Foreign Direct Investment (FSFDI) on economic growth by estimating a panel data model for 11 Central and Eastern European countries (CEECs) between 1994 and 2003 in a cross-country growth accounting framework. The analysis concentrates on the efficiency channel linking FSFDI to economic growth. The results clearly indicate that there can be a relationship between FSFDI and economic growth - depending on a careful examination of lagged, hump-shaped or interacted effects of FSFDI. Approaching a medium degree of financial M&A is rewarded by higher economic growth after two periods. Beyond it, FSFDI seems to spur economic growth depending on a higher human capital stock.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 608KB | Date: Oct 2005 | Pages: 26


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