EconStor >
Rheinische Friedrich-Wilhelms-Universität Bonn >
Zentrum für Europäische Integrationsforschung (ZEI), Universität Bonn >
ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn >

Please use this identifier to cite or link to this item:

Full metadata record

DC FieldValueLanguage
dc.contributor.authorBrada, Josef C.en_US
dc.contributor.authorTomsik, Vladimíren_US
dc.description.abstractWe 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.-
dc.publisherZEI Bonnen_US
dc.relation.ispartofseriesZEI working paper B 10-2003en_US
dc.subject.keywordbalance of payments-
dc.subject.keywordforeign exchange crisis-
dc.subject.keywordforeign direct investment-
dc.subject.keywordtransition economies-
dc.titleForeign direct invesment and perceptions of vulnerability to foreign exchange crises: Evidence from transition economiesen_US
dc.typeWorking Paperen_US
Appears in Collections:ZEI Working Papers, Zentrum für Europäische Integrationsforschung, Universität Bonn

Files in This Item:
File Description SizeFormat
370773799.pdf268.3 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.