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This book provides authoritative academic and professional insights into the effects of foreign direct investment (FDI) on home and host countries. It highlights global trends and patterns, and explores related policy challenges all with a special focus on the countries in Central, Eastern and South-Eastern Europe.The book cuts through the existing data fog by offering a wide range of up-to-date academic findings and institutional expertise. Those findings are rounded off with lessons to be learned from historical developments (Ireland's success story), an evaluation of current trends (the role of China) and an investment promotion agency policy for attracting sustainable investment (CzechInvest). Contributions made by central bank officials, institutional representatives, members of academia and professionals provide for a uniquely complementary view on FDI developments and their implications.At a time of big changes in the FDI landscape, this book offers both empirical and econometric evidence on foreign direct investment and will be of great interest to economists and other experts in the fields of economic policy and European integration from central, commercial and investment banks, governments, international organizations, universities and research institutes. The special focus on FDI will attract those interested in, or directly involved in tackling the challenges of attracting sustainable investment or investing successfully abroad.
Edited by Klaus Liebscher, Governor, Oesterreichische Nationalbank, Josef Christl, Managing Director, Macro-Consult e. U., Peter Mooslechner, formerly Oesterreichische Nationalbank and Doris Ritzberger-Grünwald, Director, Oesterreichische Nationalbank, Austria
Contents:PrefacePolicy Challenges of FDIThe Changing Landscape of FDI in EuropeKlaus LiebscherFDI: A Driver for and a Result of Private Sector DevelopmentManfred SchepersThe Contribution of Taxation to European Competitiveness, Growth and EmploymentLászló Kovács Who Bears the Risk of FDI Financing? Selected Views of the EIBIvan PilipFinance in Transition: Banks at the Vanguard of Foreign Direct InvestorsErik Berglöf and Samuel FankhauserEconomic and Monetary Challenges of Euro Area Enlargement Jürgen StarkA Special Academic Perspective on FDIMeasuring the Impacts of FDI in Central and Eastern EuropeRobert E. Lipsey PART I: HOME AND HOST COUNTRY EFFECTS OF FDI 1. The Role of FDI in TransitionJosef Christl2. Foreign Direct Investment Spillovers in Emerging Market EconomiesYuriy Gorodnichenko, Jan Svejnar and Katherine Terrell3. The Role of FDI in Eastern Europe and New Independent States: New Channels for the Spillover EffectIrina Tytell and Ksenia Yudaeva4. Blessing or Curse? An Industry-level Analysis of FDI Effects on Productivity and Wages in CEECsJesús Crespo Cuaresma, Carmen Fillat Castejón, Maria Antoinette Silgoner and Julia Woerz5. How do FDI Inflows Affect the Productivity of Domestic Firms? The Role of Horizontal and Vertical Spillovers, Absorptive Capacity and CompetitionMarcin Kolasa6. Home Country Spillovers of FDI: Some Results and Discussion of Estimation IssuesPriit Vahter and Jaan Masso7. Effects of FDI on Industry Structure: A Host Country PerspectiveKatja Zajc KejžarPART II: WHERE IS FDI GOING? GLOBAL TRENDS AND PATTERNS8. Why FDI? Re-inventing Economic Geography in Times of GlobalizationPeter Mooslechner9. Recent FDI Trends: Implications for Investment PolicyBlanka Kalinova10. Trends in FDI: The Austrian PerspectiveRené Dell’mour11. Is China’s FDI Coming at the Expense of Other Countries?Barry Eichengreen and Hui Tong12. FDI in Services: Recent Developments and Prospects in EuropeArjan Lejour13. Outward FDI from New European Union Member StatesMarjan Svetličič and Andreja Jaklič PART III: HOW TO ATTRACT SUSTAINABLE INVESTMENT: THEORY AND PRACTICE14. The Determinants of FDI in Central, Eastern and South-Eastern Europe: Lessons from the Past and Prospects for the FutureLaura Resmini15. How to Make FDI in Central and Eastern European Countries SustainableChristian Bellak and Markus Leibrecht 16. Does FDI Help Development? The Good, the Bad, the Surprising and the Mistaken. Policy Issues for Developed Countries, Developing Countries and Multilateral Lending InstitutionsTheodore H. Moran17. The Most FDI-intensive Economy in Europe: Analysis of the Irish Experience and Current Policy IssuesFrank Barry18. Attracting Sustainable FDI and Building a Knowledge-based Economy: The Case of CzechInvestJakub MikulasekIndex