Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37139 
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dc.contributor.authorFriedrich, Christianen
dc.contributor.authorŽďárek, Václaven
dc.date.accessioned2010-02-19-
dc.date.accessioned2010-08-03T13:11:52Z-
dc.date.available2010-08-03T13:11:52Z-
dc.date.issued2009-
dc.identifier.urihttp://hdl.handle.net/10419/37139-
dc.description.abstractThis paper examines how international investors evaluate the change in the risk-return profile often Central and Eastern European countries that recently entered the European Union (EU). By supplementing international investment position data provided by IMF's International Financial Statistics with data obtained from Lane and Milesi-Ferretti's External Wealth of Nations Mark II Database, we create a unified data set of external assets and liabilities for new EU member states (NMS) ranging from 1993 to 2007. Drawing from the so called 'push-pull' factor approach and the achievements of Modern Portfolio Theory, we then collect an extensive set of international controls and a number of local risk-return variables that served as transmission channels for the benefits of EU integration and hence, potentially attracted foreign capital. These variables finally enter a panel data model with the Feasible Generalized Least Squares, (FGLS) and linear regression method with panel-corrected standard errors (PCSE) as proposed by Beck and Katz (1995). Our results indicate that convergence towards the EU has had a significant impact on the liability side of international investment positions in NMS. Especially for debt and portfolio equity liabilities, the region's affiliation with the EU has mitigated the negative evaluation of local macroeconomic risk factors by international investors. Nevertheless, also global forces turned out to be important drivers of the recent build-up in external liabilities and show that the region's capital supply still depends on actions taken in other parts of the world.en
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.relation.ispartofseries|aKiel Advanced Studies Working Papers |x454en
dc.subject.jelE31en
dc.subject.jelF15en
dc.subject.jelF21en
dc.subject.ddc330en
dc.subject.keywordCapital flowsen
dc.subject.keywordpush-pull factor approachen
dc.subject.keywordEU enlargementen
dc.subject.keywordnew EU member statesen
dc.subject.stwKapitalmobilitäten
dc.subject.stwPortfolio-Investitionen
dc.subject.stwAuslandsverschuldungen
dc.subject.stwKapitalimporten
dc.subject.stwEntwicklungskonvergenzen
dc.subject.stwPhillips-Kurveen
dc.subject.stwEU-Staaten (Osteuropa)en
dc.subject.stwEU-Staatenen
dc.titleAn analysis of the impact of the European convergence Phillips Curve: Evidence from US and Euro area in new EU member countries-
dc.typeWorking Paperen
dc.identifier.ppn61894558Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:ifwasw:454en

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