Trick or Treat? The Effect of IMF Programmes on Mobilising FDI in CESEE Countries
Journal Title: Finance a uver - Year 2018, Vol 68, Issue 3
Abstract
This paper investigates the effect of IMF programmes on foreign direct investment in the countries of Central, Eastern and South-eastern Europe. We use the original dataset for 17 countries in the region for the period from 1990 to 2013. In order to address selection bias stemming from the fact that countries are not randomly assigned to participation in IMF arrangements in a given year and controlling also for the unobservable factors influencing both IMF participation and foreign investment, we employ the treatment effect model. The robustness of our findings was additionally assessed by the fixed effects instrumental variable panel and Arellano Bond dynamic panel estimation. Irrespective of the method used and model specification, we find that IMF arrangements negatively affect foreign direct investment in the CESEE region.
Authors and Affiliations
Marijana Andrijić, Tajana Barbić
Keywords
Related Articles
- EP ID EP544395
- DOI -
- Views 147
- Downloads 0
Interactions of Unconventional Monetary Policy Measures with the Euro Area Yield Curve
We study how unconventional monetary policy affects the shape of the yield curve and, conversely, the predictive power of short-run yield curve dynamics for the policy event. Two types of unconventional monetary policy m...
European Government Bond Market Contagion in Turbulent Times
In this paper we investigate the dynamics of European government bond market contagion during the financial crisis and, subsequently, during the European sovereign debt crisis. Following Bae et al. (2003), we use the coe...
Systemic Risk in Financial Risk Regulation
The paper deals with the systemic risk concept which is important in the framework of modern risk regulatory systems in finance and insurance (the most actual examples are Basel III in finance and Solvency II in insuranc...
The Effects of the Euro Area Entrance on the Monetary Transmission Mechanism in Slovakia in Light of the Global Economic Recession
In this paper we estimate the monetary policy reaction function of the National Bank of Slovakia and the possible impact of an independent monetary policy on the Slovak economy in 2009 and 2010, when the global economic...
Construction of Commodity Portfolio and Its Hedge Effectiveness Gauging – Revisiting DCC Models
This paper examines how various types of dynamic conditional correlation (DCC) models performs in the construction of risk-minimizing portfolio. Our portfolios consist of SPY-ETF instrument as a primary asset and four co...