{
  "title": "Sectoral Composition of Foreign Direct Investment and External Vulnerability in Eastern Europe",
  "publication": "IMF Working Papers, June 1, 2011",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/sectoral-composition-of-foreign-direct-investment-and-external-vulnerability-in-eastern-24886",
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  "summary": "In the run up to the global crisis, countries in Central Eastern and Southeastern Europe attracted large capital inflows and some of them built up large external imbalances. This paper investigates whether these imbalances are linked to the sectoral composition of FDI.",
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    {
      "heading": "Executive summary",
      "content": "- In the run up to the global crisis, countries in Central Eastern and Southeastern Europe attracted large capital inflows and some built up large external imbalances.\n- The paper investigates whether these imbalances are linked to the sectoral composition of FDI.\n- Key conclusion: FDI in the tradable sectors leads to an improvement of the external balance.\n- Determinants of greater FDI in tradable sectors include: large market size, good infrastructure, greater trade integration, and an educated labor force."
    },
    {
      "heading": "Major findings",
      "content": "- FDI in the tradable sectors leads to an improvement of the external balance.\n- Countries with:\n  - large market size,\n  - good infrastructure,\n  - greater trade integration,\n  - educated labor force\n  are more likely to receive more FDI in the tradable sectors."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subjects: Balance of payments, Capital controls, Capital inflows, Exports, Foreign direct investment, International trade, Trade balance\n- Keywords: Baltics, Capital controls, Capital inflows, Central Eastern Europe, country, export, export-platform FDI, Exports, external vulnerability, FDI in the nontradable sector, FDI inflow, FDI stock, foreign direct investment, share, Southeastern Europe, tradable FDI, Trade balance, Western Europe, WP\n\n---\n\n Content in this bundle\n\n- wp11123\n  - wp11123 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp11123 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/sectoral-composition-of-foreign-direct-investment-and-external-vulnerability-in-eastern-24886"
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    "Authors: Yuko Kinoshita",
    "Published: June 1, 2011",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455263400.001",
    "In the run up to the global crisis, countries in Central Eastern and Southeastern Europe attracted large capital inflows and some built up large external imbalances.",
    "The paper investigates whether these imbalances are linked to the sectoral composition of FDI.",
    "Key conclusion: FDI in the tradable sectors leads to an improvement of the external balance.",
    "Determinants of greater FDI in tradable sectors include: large market size, good infrastructure, greater trade integration, and an educated labor force.",
    "FDI in the tradable sectors leads to an improvement of the external balance.",
    "Countries with:",
    "Subjects: Balance of payments, Capital controls, Capital inflows, Exports, Foreign direct investment, International trade, Trade balance",
    "Keywords: Baltics, Capital controls, Capital inflows, Central Eastern Europe, country, export, export-platform FDI, Exports, external vulnerability, FDI in the nontradable sector, FDI inflow, FDI stock, foreign direct investment, share, Southeastern Europe, tradable FDI, Trade balance, Western Europe, WP",
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