Financial Flows to Transitional Economies in an Integrated Europe

Economic Policy in Transitional Economies, Vol. 9, June 1999

Posted: 6 Oct 1999

See all articles by Claudia M. Buch

Claudia M. Buch

Deutsche Bundesbank

Ralph P. Heinrich

UN Economic Commission for Europe - Economic Analysis Division

Daniel Piazolo

THM Technische Hochschule Mittelhessen

Abstract

The integration of the central and eastern European countries into the international capital markets has been and will be determined by the process of European Union integration. Our analysis shows that southern and eastern European countries already appear to be surprisingly similar regarding FDI flows from EU members. The central and eastern European countries, however, are likely to attract increased portfolio flows in the years to come. We argue that membership alone in a regional arrangement like the EU is neither sufficient for sustained capital inflows nor is it the guarantee for increased investment activities. Rather, domestic economic policy has to change in accordance: Liberalization matters, not only membership.

JEL Classification: F15, F21, F32, F43

Suggested Citation

Buch, Claudia M. and Heinrich, Ralph P. and Piazolo, Daniel, Financial Flows to Transitional Economies in an Integrated Europe. Economic Policy in Transitional Economies, Vol. 9, June 1999, Available at SSRN: https://ssrn.com/abstract=169121

Claudia M. Buch

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Ralph P. Heinrich

UN Economic Commission for Europe - Economic Analysis Division ( email )

Room 441
Palais des Nations
1211 Geneva 10
Switzerland
0041 22 917 1269 (Phone)

Daniel Piazolo (Contact Author)

THM Technische Hochschule Mittelhessen ( email )

University of Applied Sciences
Wilhelm-Leuschner-Straße 13
Friedberg, 61169
Germany

HOME PAGE: http://www.thm.de/wi/daniel-piazolo

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