@techreport{Brada2003Foreign,
abstract = {We show that the imputation of reinvested profits of the subsidiaries of foreign firms as a debit
item on a host country's balance of payments account tends to overstate the current account
deficit and to make the host country seem more vulnerable to financial crisis. We also show that,
because of the workings of the FDI financial life cycle, this phenomenon is most evident for
countries that have recently received large inflows of capital. The transition economies of East
Europe certainly fall among such countries, and we show that, for the Czech Republic and
Hungary, this imputation has a large effect on their reported current account balance. We verify
the working of the FDI financial life cycle using a panel of transition economies.},
address = {Bonn},
author = {Josef C. Brada and Vladim\'{\i}r Tomsik},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F21; F23; F34; 330; balance of payments; foreign exchange crisis; foreign direct investment; transition economies},
language = {eng},
number = {B 10-2003},
publisher = {ZEI},
title = {Foreign direct invesment and perceptions of vulnerability to foreign exchange crises: Evidence from transition economies},
type = {ZEI working paper},
url = {http://hdl.handle.net/10419/39513},
year = {2003}
}
