Economy of Ukraine
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№ 11/2021

Ekon Ukr. 2021 (11): 55–74
https://doi.org/10.15407/economyukr.2021.11.055

ECONOMY OF FOREIGN COUNTRIES

УДК

JEL: F21, F23

MINASSIAN Garabed1, YOTZOV Victor2

1Economic Research Institute of the Bulgarian Academy of Sciences, Research ID : http://www.researcherid.com/rid/: https://www.scopus.com/authid/detail.uri?authorId=6602125523
OrcID ID : https://orcid.org/https://orcid.org/0000-0001-7146-5102
2Economic Research Institute of the Bulgarian Academy of Sciences , Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-9956-0483


FOREIGN CAPITAL INFLOWS IN CENTRAL AND EAST EUROPEAN COUNTRIES


Free cross-border movement of goods and capital correlates with the general economic state of a country in both apparent and subtle ways. The intensity of financial and economic interactions with the outside world is an indicator of the sustainability and efficiency of the national economy.
After joining the EU, all Member States liberalized the balance of payments (BoP), i.e. ensured free and unrestricted cross-border movement of goods and capital. For certain countries the liberalization of BoP was a considerable challenge, which they managed to successfully overcome. These were the EU countries of the Council for Mutual Economic Assistance (CMEA) was active among the former socialist countries until 1990, or the so-called "CMEA-EU countries".
For an economic comparison to be plausible, it has to be made between the dynamics of comparable economies. Such a group of economies is formed by the CMEA-EU countries. EU membership provided them with the opportunity to use on their own their potential in property, intellect, power and resources. This is the reason why the present study has adopted a comparative analysis based on CMEA-EU countries.
An attempt has been made to comprehensively monitor and analytically assess all major financial flows, especially in the CMEA-EU countries, and their impact on economic dynamics. A comparison is made for both the positive and negative aspects of the incoming financial resources in these countries. Particular emphasis is placed on macroeconomic elements and policies that outline, create conditions, and predetermine the scale, interactions and projections of cross-border financial flows.



Keywords:economic growth; foreign direct investments

Article original in English (pp. 55 - 74) DownloadDownloads :150
The article was received by the Editorial staff on September 28 , 2021

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