Can FDI be sustained in CEE? |
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Integration into the EU has supported large capital flows into new EU member states. Foreign direct investments (FDI) have hence increased rapidly, and have to a large extent financed large C/A deficits. In the coming years we, however, see large risks that these flows could decline in most countries in CEE, SEE and in the Ukraine and Kazakhstan. Below we present some arguments for this view. First, historical FDI in the EU8+2 has to a large extent reflected privatisation revenues, and since
Filed under: Fundamental
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