What Moves Capital to Transition Economies?

By Pietro Garibaldi, Nada Mora, R. Sahay, Jeromin Zettelmeyer. Social Science Research Network, 2001

326 citations recorded by the source corpus.

The transition economies in Europe and the former Soviet Union between 1991 and 1999 differed widely in terms of total capital flows and the share and composition of private flows. With some exceptions (notably Russia), the main source of private inflows was foreign direct investment. Portfolio investment was volatile, and concentrated in a handful of countries. Regressions show that direct investment can be well explained in terms of economic fundaals, whereas the presence of a financial market infrastructure and a property rights indicator are the only explanatory variables that seem to have a robust effect on portfolio investment.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/12aa7651832a2b22c7aa5f68c388d7f34664c7a9

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Citations in the corpus

Determinants of FDI in BRICS Countries: A panel analysis (2008, background): “Garibaldi et al (2002) analyse the FDI and Portfolio investment flows to 26 transition economies in Eastern Europe including the former Soviet Union from 1990 to 1999.”
Does globalization hurt the poor? (2002, background): “For instance, the trade openness 15For instance, in their study on capital flows to transition economies, Garibaldi et al. (2002) constructed indices of restrictions on foreign direct investment and portfolio investment.”
The Effects of the Governance Environment on the Choice of Investment Mode and the Strategic Implications (2007, unknown): “studies, such as Globerman and Shapiro (2003). there is some overlap in the measurements of political risk and governance environment, the two concepts are substantially different.”
Sovereign Borrowing by Developing Countries: What Determines Market Access? (2011, unknown): “As market perceptions could, in part, depend on some of the variables included in the regression, we follow Eichengreen and Mody (1998) and Garibaldi et al. (2001) by including only the residual of a regression of market perceptions on the other variables in our specification.”
The Determinants of Foreign Direct Investment in Transition Economies (2000, methodology): “Foreign direct investment (FDI) is a particularly important element of economic integration, because it opens possibilities for accelerated growth, technical innovation and enterprise restructuring, as well as capital account relief (see Garibaldi et al (1999); Holland and Pain (1998)).”
Capital Flows to Transition Economies: Master or Servant? (2006, unknown): “Recent findings by Garibaldi et al. (1999) that the distribution of FDI flows across countries is significantly influenced by investor perceptions of country risk as well as survey-based indicators of the legal and political climate are consistent with the view that such factors are important…”
Resource-Based Advantages in an International Context† (2008, background): “…measure of institutional factors, the Corruptions Perception Index, the World Bank’s institutional measures, or a measure of political constraints (Garibaldi et al., 2001; Henisz, 2000; Raiser et al., 2000; Transparency International, 2001), although we found high correlations between these…”
Foreign Direct Investment, Financial Development and Political Risks (2010, unknown): “Inflation and exchange rate (Froot and Stein, 1991; Garibaldi et al, 2001) are taken from the Penn World Table.”
FDI Inflow Determinants in BRIC countries: A Panel Data Analysis (2011, background): “Garibaldi et al (2002) analyse the FDI and Portfolio investment flows to 26 transition economies in Eastern Europe including the former Soviet Union from 1990 to 1999.”