МІЖНАРОДНІ ФІНАНСОВІ ПОТОКИ В КРАЇНИ ЦЕНТРАЛЬНОЇ ТА СХІДНОЇ ЄВРОПИ ПІСЛЯ ГЛОБАЛЬНОЇ ФІНАНСОВОЇ КРИЗИ 2008 РОКУ: СТРУКТУРНІ ОСОБЛИВОСТІ

This paper aims to investigate the role of foreign direct investment (FDI) on economic development in transition countries of Central and Eastern Europe. Statistical analysis is applied to investigate the relationship between FDI indicators and some explanatory variables. Findings show that FDI stock and especially labor productivity significantly stimulate exports. Moreover, the ratio of FDI stock to GDP is found to be the most powerful driver of employment. Outcomes depend however on FDI policies. Therefore, policy-makers need to carefully consider the side effects of the measures they design, to avoid negative effects.

Foreign Direct Investment In China: Effects On Growth And Economic Performance

This chapter characterizes the contemporary role of the Eastern and Central European countries in the international tourism and as the source of the tourist movement and the income and expenditure balance in the foreign tourism. Among the Central and Eastern European countries, there are 20 former socialist countries. Some of them came into existence as a result of the Soviet Union, Yugoslavia and Czechoslovakia disintegration. Their total surface adds up to 64% of the Europe area. Tourist potential of the Central and Eastern European countries is significant, expressed by, among the others, a high number of national parks, natural and cultural UNESCO heritage objects and by the capacity of the accommodation units (2014, 2.7 million of beds). The size of the international incoming tourism is illustrated with data for 2005 and 2013 concerning the number of foreign visitors (280 million and 308 million), foreign tourists (280 million and 99 million of people) with overnight stays (95 million and 103 million) and financial income arising from attending them (34 billion euro and 85 billion dollars). Outbound tourism of Central and Eastern Europe inhabitants in 2005 and 2013 amounted to 129 billion and 124 billion of departures and expenditures of 31 billion euro and 99 billion euro. The financial balance taking into account the income from attending international tourism as well as the inhabitants’ own expenditures spent for outbound departures amounted to +3 billion euro in 2003 and –14 billion dollars in 2013.

The study investigated the drivers of international investment decisions in South Africa. As part of its investment drive, the government has embarked on a series of activities to lure investors. That been the case it appears that most of the empirical studies focused mainly on the relationship between investment and economic growth, hence very little seems to be known about the empirical evidence of other drivers of international investment decisions and their impact on the South African economy. The findings are envisaged to provide information and to add policy formulation to attract the much needed foreign investment. The autoregressive distribution lag approach was chosen to analyse the long and the short run relationships amongst the variables of interest and Granger Causality analysis was also employed to determine causal relationships between dependent variable and its regressors. The results indicated that a stronger statistical and economic basis for empirical error correction model was established by the presence of cointegration amongst the variables and all the regressors were found to have a positive effect in the stock of foreign direct investment. Empirical findings suggest that government should ensure stable macroeconomic policies and labour disputes that result into prolonged strike actions must be minimised.

This paper analyses the link between exchange rates and stock markets in four Central and Eastern European countries. We simultaneously explore the comovements of foreign exchange markets and stock markets at the cross-country level and the link between these two markets within each country while employing a Dynamic Conditional Correlation Mixed Data Sampling (DCC-MIDAS) model. Such an approach to financial markets conveys a much more visible picture of the existing patterns of financial integration between these markets that would otherwise be neglected. The estimates reveal significant differences between the patterns of correlation in our sample countries. First, the paper finds a quite low degree of convergence between foreign exchange markets, with rising correlations during some of the crisis episodes. Second, both the 2004 European Union enlargement and the European sovereign debt crisis underpin the stock market comovements in the Central and Eastern European countries. Third, the correlations between the exchange rate returns and stock markets rise mostly during the European sovereign debt crisis and to a lesser extent during the global financial crisis, revealing signs of contagion and lower portfolio diversification opportunities. These results are of utmost relevance for the process of financial integration and they also have important implications for policy makers, risk management, and investors.

This paper assesses the impacts of the global financial and economic crisis on the agro-food sector of Central and Eastern European, Caucasus and Central Asian countries on the basis of research conducted in Hungary, Ukraine, Armenia and Kyrgyzstan. The objective of the study was to propose policy options to the Food and Agriculture Organisation of the United Nations and other public authorities which can be applied to lessen the undesirable effects of the current or future crises in the sector. Results of interviews of stakeholders were analysed in the context of primary economic data and sixteen policy recommendations were formulated.

This study assesses the quality of financial reporting in ten Central and Eastern European countries using a methodology based on natural language processing (NLP) techniques. 570 annual reports of companies listed on the main index on the stock exchanges of 10 Central and Eastern European (CEE) countries, over the period 2019–2023, were evaluated to determine the degree of convergence of the following four measurable qualitative characteristics: relevance, exact representation, comparability and understandability. The main objective is to identify consistency in the quality of accounting information based on the application of an international financial reporting framework. The applied methodology eliminates subjective variability by implementing a standardized scoring system, aligned with the criteria developed by NiCE, using libraries such as spaCy and NLTK for term extraction, respective sentiment analysis and word frequency evaluation. The results reveal significant heterogeneity in all characteristics examined, with statistical tests confirming substantial differences between countries. The investigation of relevance revealed partial convergence, with three dimensions achieving complete uniformity, while the exact representation showed the highest variability. The assessment of comparability showed a significant difference between countries’ extreme values, and in terms of comprehensibility a formalistic approach was evident, with technical dimensions outweighing user-oriented aspects. The overall quality index varied significantly across countries, with a notable average deterioration in 2023, indicating structural vulnerabilities in financial reporting systems. These findings support initial hypotheses on the lack of homogeneity in the quality of financial reporting in the selected region, despite the implementation of international standards.

Purpose. In our article, we assess the scope and directions of changes in agricultural labor productivity compared to other sectors of the economy. Methodology / approach. For our survey we choose 15 countries: (і) EU countries – Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, as well (іі) post-Soviet European countries – Ukraine, Moldova, Belarus, russia and also (ііі) Albania for period 1996–2019. We use an empirical methodology designed to analyze structural decomposition of labor productivity into the growth effect within the sector and structural dynamic and static effects, often called ‘shift-share analysis’. We analyze process of convergence of sectoral labor productivity and its impact on economic growth. Results. Labor productivity grows in the agricultural sector of the economy at the fastest rate, on average by almost 12 % per year. The growth effects within the industry takes a dominant position in all sectors of the economy in the countries of Central and Eastern Europe and its share is on average 88.5 %, and the structural effects are as follows: the dynamic effect is almost 1%, the static effect is 10.4 %. We have confirmed that the agricultural sector is gaining weight in the economic growth of the countries of Central and Eastern Europe, the influence of the service sector is increasing, although together they do not exceed the influence of the growth of value added in industry. Originality / scientific novelty. For the first time we have used the methodology of decomposition of labor productivity growth into three effects: growth, dynamic and static ones for the period before the financial crisis 2008 and after the crisis for 15 countries of Central and Eastern Europe. Using panel GLS estimator with fixed effects we estimate the impact of labor productivity on economic growth in different sectors for 1991–2020 period. Practical value / implications. The main results of the study can be used for elaboration of effective economic policy in agriculture development in Central and Eastern European countries; for identification of structural shifts in labor productivity in different sectors of the economy before and after the financial crisis; for estimation of the level of convergence between different sectors of the economy; determining main factors of increasing value added in agriculture in Ukraine and other Central and Eastern European countries; implementation structural changes in economy in the period of crisis.

The scientific article identifies the prospects for the development of the defense sector of the countries of Central and Eastern Europe in the context of Russian aggression. In particular, it is noted that the war in Ukraine has become a catalyst for the search by European countries that have struggled with balancing military power and the social security system. It is emphasized that the policy of upholding common security interests, intensive interaction of allied countries, strengthen the positions of all parties, strengthen the basis for bilateral and multilateral relations, and increase the arsenal of means for responding to common threats. The need to strengthen the European defense budget in general and individual countries of the European continent, the development of their military-industrial capabilities is indicated, and the prospects for deepening internal cooperation in the defense industry, the creation of a European army, subregional alliances of countries, the development of new formats of interaction with NATO and the European Union, and the establishment of partnership relations with the United States and allied countries are identified. The arguments are presented that the construction of joint defense enterprises for the production of ammunition with the help of partner countries, the expansion of their own production of new technical equipment, the involvement of NATO member states in exercises within the framework of the Northern European military alliance, the deployment of new forces of the North Atlantic Alliance in the region in order to prevent the occupation of countries or their parts will contribute to increasing the defense capability of the countries of Central and Eastern Europe in modern conditions. The conclusion is made that the countries of Central and Eastern Europe should resist today's changes in the security paradigm through more effective coordination of defense spending, increasing the role of the European Defense Agency and increasing financing of the defense industry.

The countries of Central and Eastern Europe, from the non-euro area, have completed the process of economic transition before joining the European Union. Achieving a certain level of economic development and membership in the European Union have generated their involvement in a new transition process, namely the energy transition. Concerns about promoting the low carbon economy have become increasingly complex for those countries that are interested in the environmental impact of economic activity. This study aims to analyze the process of energy transition in the countries of Central and Eastern Europe on the basis of the causality relationship among specific variables for the period 1990–2018. The study is based on cross-sectional panel data and the panel vector error correction model (PVECM). The efforts made by these countries by joining the European Union have generated economic development, with positive effects being recorded on the protection of the environment, a fact due to the strict regulations adopted and rigorous implementation at the national level. Foreign capital had a positive impact on the transition to a low carbon economy because most of the FDI flows attracted by the non-euro countries in the CEE come from Western Europe, i.e., from EU member countries, located either among the founders or among the countries that joined during the first waves of union expansion. Membership in the European Union facilitates the energy transition process for the non-euro countries of Central and Eastern Europe, but the new geopolitical events generate the reconfiguration of the European strategy of considering the need to ensure energy security.

Motivation: A concept that links the question of the intensity and direction of migration process with the process of socio-economic transformation is the migration transition theory. The migration transition comprises two phases. In the first phase, there is a significant increase in emigration processes due to the intensely increasing birth rate. In the second phase, on the other hand, an increase in immigration processes is observed, which is preceded or accompanied by a zero or negative natural increase. Currently, a similar change from negative to positive net migration balance can be observed in the countries of Central and Eastern Europe. Aim: The aim of this article is the evaluation of the intensity and directions migration processes in the countries of Central and Eastern Europe. The research question is whether the positive net migration balances achieved by the countries of Central and Eastern Europe can be considered as confirmation that these countries are in the second phase of the migration transition. The research question is validated by analysing statistical data (Eurostat) and the results of the European Social Survey, which is preceded by a review of the literature in question. Results: As a result of the progressive socio-economic development, Central and Eastern Europe is attracting new residents. The scale of this phenomenon is evidenced not only by the number of registered migrations, but above all by the number of first residence permits for work, education and family reasons. Stable economic growth and increasing labour shortages have created ideal conditions for labour immigration in recent years. It can therefore be concluded that the socio-economic development of the macro-region under study has contributed to the second stage of the migration transition, characterised by a positive net migration balance.

Role of Foreign Direct Investment by Multinational Companies in Economic Growth of Nepal Shila Mishra, Ekaterina A. Degtereva, Khyam Paneru Abstract This paper explains the effect of foreign direct investment on economic growth of Nepal. It examines the impact of the total number of industries and the total number of positions approved for foreign investment on the gross domestic product (GDP) per capita and the real GDP growth rate of Nepal. The paper uses data from fiscal year 2004/05 to fiscal year 2013/14. The analysis shows the positive impact of foreign investment on real GDP growth rate but insignificant impact on GDP per capita of Nepal. This paper reaches the conclusion that the host country should take full advantage of foreign investment to boost the economic growth of the nation. The host country should distribute foreign investment to industries by category (construction, manufacturing, energy, services, tourism, and agriculture) and at different scales (small, medium, and large). Full Text: PDF DOI: 10.15640/jeds.v5n1a9

Central and Eastern Europe, in the heartland of Eurasia, is an important region for the mutual construction of the “Belt and Road”, and also a key region for foreign cooperation of China’s energy industry. According to the renewable energy development goals of Central and Eastern European countries, the proportion of non-fossil energy consumption will increase to more than 25% by 2030. The renewable energy will become one of the important routes to achieve energy transformation and clean emissions in Central and Eastern Europe. At present, the proportion of renewable energy consumption in some Central and Eastern European countries is still significantly lower than the EU’s 2030 target; therefore, the pace of energy transformation will be further accelerated. Since China has advanced technology and rich experience in wind power, hydro-power, photovoltaic, nuclear power and other clean energy fields, it can cooperate with Central and Eastern European countries in green energy project development, smart grid, engineering construction, pipe network construction and other fields. The cooperation between the two sides is highly complementary, conforms to the theme of the era of global sustainable development, vigorously promoting the green development of the “Belt and Road”, and consolidating the people-to-people bond of jointly building the “Belt and Road”. This study focuses on the energy development trend of China and Central and Eastern European countries, explores the cooperation paths of the two sides in the energy field, and puts forward targeted reference suggestions for further deepening cooperation between the two sides.

The article analyzes the importance and influence of parliamentary committees in the conditions of minority governments at the theoretical level and empirically, in particular in the countries of Central and Eastern Europe. The author assumes that the legitimate mechanism of people’s representation in countries of this type is the parliamentary method of government formation and responsibility. Therefore, governmental cabinets, including minority ones, depend on party composition of parliaments in their formation, functioning and responsibility. It was suggested that the frequency of minority governments’ formation is additionally determined by the specialization of parliaments, in particular through the prism of parliamentary committees as an arena of government-opposition relations, where the opposition almost always prevails in the case of minority governments. However, it was analytically proved that the committees themselves, in particular their various attributes and “power”, do not or almost do not affect the frequency of minority governments’ formation in the countries of Central and Eastern Europe. At the same time, the strengthening of committees can serve to strengthen parliamentary opposition, which contributes to the increase in frequency of minority governments’ formation.

An attractive investment climate is a key tool for a country’s economic development, especially in developing and poor countries that are unable to develop their economies with local resources. However, foreign investment is not always directed unilaterally to the well-being of the local economy as expected. Employment, technology, taxation, import substitution and competition, these are the most important aspects of foreign direct investment that foreign companies bring to the host country. In addition, local businesses are being developed and supported, including local industry upgrades. Over the last 20 years, foreign direct investment has played a major role in Georgia's economic transformation process. There are still many questions about what is the motivation and what is the impact of foreign direct investment on the host economy? To what extent do foreign direct investments contribute to the development and modernization of local industries? How deeply are they integrated in different sectors of the Georgian economy? Trends in the development of foreign direct investment in Georgia are analyzed, in particular: the dynamics of foreign direct investment in recent years and the ways to regulate the investment environment.