Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe
This paper provides empirical evidence that countries in emerging Europe reaped the benefits of international financial integration over the past 12 years by attracting sizeable foreign capital inflows and accelerating medium-term growth. But the a...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111006170943 http://hdl.handle.net/10986/3604 |
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okr-10986-3604 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABSOLUTE VALUE ABSORPTIVE CAPACITY ACCESSION COUNTRIES ADVANCED ECONOMIES ANNUAL GROWTH ANNUAL GROWTH RATE ASSETS AVERAGE GROWTH AVERAGE GROWTH RATE BALANCE OF PAYMENTS BANKING SYSTEM BENCHMARK BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL FORMATION CAPITAL GOODS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL STOCK CENTRAL PLANNING COLLATERAL CONSUMER CHOICE CONSUMPTION SMOOTHING CONTROL VARIABLES CONVERGENCE HYPOTHESIS COUNTRY DUMMY CREDIT BOOM CURRENCY CURRENCY CRISES CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT POSITIONS CURRENT ACCOUNT SURPLUSES CURRENT ACCOUNT TRANSACTIONS DEBT DEPENDENCY RATIO DEPENDENT VARIABLE DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTORTIONS DOMESTIC BANKS DOMESTIC FINANCIAL SECTOR DOMESTIC SAVING DOMESTIC SAVINGS DUMMY VARIABLE DUMMY VARIABLES DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC MODEL ECONOMIC POLICY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC THEORY ECONOMICS EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL WORK ENDOGENOUS GROWTH THEORIES ENDOGENOUS VARIABLES EQUATIONS ERROR TERM ERROR TERMS ESTIMATED COEFFICIENT ESTIMATED COEFFICIENTS ESTIMATION RESULTS EXCHANGE ARRANGEMENTS EXCHANGE RATES EXCHANGE RESTRICTIONS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTS EXPOSURE EXPOSURES EXTERNAL FINANCING EXTERNAL IMBALANCES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SECTOR FOREIGN ASSET FOREIGN ASSET POSITION FOREIGN ASSET POSITIONS FOREIGN ASSETS FOREIGN CAPITAL FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN LIABILITIES GDP DEFLATOR GDP PER CAPITA GENERAL EQUILIBRIUM GLOBAL ECONOMY GLOBAL IMBALANCES GLOBALIZATION GRADUAL CAPITAL ACCOUNT LIBERALIZATION GROSS CAPITAL FORMATION GROWTH DETERMINANTS GROWTH EQUATION GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS GROWTH THEORIES GROWTH THEORY HIGH GROWTH HUMAN CAPITAL IMBALANCE IMBALANCES IMPORTS INCOME INDICATOR VARIABLE INFLATION INFLATION RATE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL TRADE INVESTMENT DEMAND INVESTMENT OPPORTUNITIES INVESTMENT RATES LAGGED DEPENDENT LEVEL OF INVESTMENT LONG RUN LONG-RUN GROWTH LOW-INCOME COUNTRIES |
| spellingShingle |
ABSOLUTE VALUE ABSORPTIVE CAPACITY ACCESSION COUNTRIES ADVANCED ECONOMIES ANNUAL GROWTH ANNUAL GROWTH RATE ASSETS AVERAGE GROWTH AVERAGE GROWTH RATE BALANCE OF PAYMENTS BANKING SYSTEM BENCHMARK BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL FORMATION CAPITAL GOODS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL STOCK CENTRAL PLANNING COLLATERAL CONSUMER CHOICE CONSUMPTION SMOOTHING CONTROL VARIABLES CONVERGENCE HYPOTHESIS COUNTRY DUMMY CREDIT BOOM CURRENCY CURRENCY CRISES CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT POSITIONS CURRENT ACCOUNT SURPLUSES CURRENT ACCOUNT TRANSACTIONS DEBT DEPENDENCY RATIO DEPENDENT VARIABLE DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTORTIONS DOMESTIC BANKS DOMESTIC FINANCIAL SECTOR DOMESTIC SAVING DOMESTIC SAVINGS DUMMY VARIABLE DUMMY VARIABLES DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC MODEL ECONOMIC POLICY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC THEORY ECONOMICS EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL WORK ENDOGENOUS GROWTH THEORIES ENDOGENOUS VARIABLES EQUATIONS ERROR TERM ERROR TERMS ESTIMATED COEFFICIENT ESTIMATED COEFFICIENTS ESTIMATION RESULTS EXCHANGE ARRANGEMENTS EXCHANGE RATES EXCHANGE RESTRICTIONS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTS EXPOSURE EXPOSURES EXTERNAL FINANCING EXTERNAL IMBALANCES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SECTOR FOREIGN ASSET FOREIGN ASSET POSITION FOREIGN ASSET POSITIONS FOREIGN ASSETS FOREIGN CAPITAL FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN LIABILITIES GDP DEFLATOR GDP PER CAPITA GENERAL EQUILIBRIUM GLOBAL ECONOMY GLOBAL IMBALANCES GLOBALIZATION GRADUAL CAPITAL ACCOUNT LIBERALIZATION GROSS CAPITAL FORMATION GROWTH DETERMINANTS GROWTH EQUATION GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS GROWTH THEORIES GROWTH THEORY HIGH GROWTH HUMAN CAPITAL IMBALANCE IMBALANCES IMPORTS INCOME INDICATOR VARIABLE INFLATION INFLATION RATE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL TRADE INVESTMENT DEMAND INVESTMENT OPPORTUNITIES INVESTMENT RATES LAGGED DEPENDENT LEVEL OF INVESTMENT LONG RUN LONG-RUN GROWTH LOW-INCOME COUNTRIES Stojkov, Aleksandar Zalduendo, Juan Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe |
| geographic_facet |
Europe and Central Asia Europe and Central Asia |
| relation |
Policy Research working paper ; no. WPS 5837 |
| description |
This paper provides empirical evidence
that countries in emerging Europe reaped the benefits of
international financial integration over the past 12 years
by attracting sizeable foreign capital inflows and
accelerating medium-term growth. But the aggregate pattern
masks substantial heterogeneity across countries; namely,
new European Union member states and the European Union
candidate countries are different from the European Union
neighborhood. The growth benefits are supported from both a
flow and a stock perspective in terms of the link between
foreign savings and growth. While foreign savings might in
part substitute for national savings, the analysis finds
that the channel to high growth in these countries is,
primarily, through making possible the pursuit of investment
opportunities that would otherwise remain unfunded; in turn,
this seems to be intimately linked to the opportunities
created by European Union membership. Although this
conclusion does not disappear if the outlier observations of
the credit boom period that preceded the financial crisis
are dropped from the sample, it does suggest that these
excesses did not play as positive a role for growth. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Stojkov, Aleksandar Zalduendo, Juan |
| author_facet |
Stojkov, Aleksandar Zalduendo, Juan |
| author_sort |
Stojkov, Aleksandar |
| title |
Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe |
| title_short |
Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe |
| title_full |
Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe |
| title_fullStr |
Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe |
| title_full_unstemmed |
Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe |
| title_sort |
europe as a convergence engine : heterogeneity and investment opportunities in emerging europe |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111006170943 http://hdl.handle.net/10986/3604 |
| _version_ |
1764387405619527680 |
| spelling |
okr-10986-36042021-04-23T14:02:11Z Europe as a Convergence Engine : Heterogeneity and Investment Opportunities in Emerging Europe Stojkov, Aleksandar Zalduendo, Juan ABSOLUTE VALUE ABSORPTIVE CAPACITY ACCESSION COUNTRIES ADVANCED ECONOMIES ANNUAL GROWTH ANNUAL GROWTH RATE ASSETS AVERAGE GROWTH AVERAGE GROWTH RATE BALANCE OF PAYMENTS BANKING SYSTEM BENCHMARK BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL FORMATION CAPITAL GOODS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL STOCK CENTRAL PLANNING COLLATERAL CONSUMER CHOICE CONSUMPTION SMOOTHING CONTROL VARIABLES CONVERGENCE HYPOTHESIS COUNTRY DUMMY CREDIT BOOM CURRENCY CURRENCY CRISES CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT BALANCES CURRENT ACCOUNT DEFICIT CURRENT ACCOUNT DEFICITS CURRENT ACCOUNT POSITIONS CURRENT ACCOUNT SURPLUSES CURRENT ACCOUNT TRANSACTIONS DEBT DEPENDENCY RATIO DEPENDENT VARIABLE DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTORTIONS DOMESTIC BANKS DOMESTIC FINANCIAL SECTOR DOMESTIC SAVING DOMESTIC SAVINGS DUMMY VARIABLE DUMMY VARIABLES DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC INTEGRATION ECONOMIC MODEL ECONOMIC POLICY ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC THEORY ECONOMICS EDUCATIONAL ATTAINMENT EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL WORK ENDOGENOUS GROWTH THEORIES ENDOGENOUS VARIABLES EQUATIONS ERROR TERM ERROR TERMS ESTIMATED COEFFICIENT ESTIMATED COEFFICIENTS ESTIMATION RESULTS EXCHANGE ARRANGEMENTS EXCHANGE RATES EXCHANGE RESTRICTIONS EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTS EXPOSURE EXPOSURES EXTERNAL FINANCING EXTERNAL IMBALANCES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SECTOR FOREIGN ASSET FOREIGN ASSET POSITION FOREIGN ASSET POSITIONS FOREIGN ASSETS FOREIGN CAPITAL FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN LIABILITIES GDP DEFLATOR GDP PER CAPITA GENERAL EQUILIBRIUM GLOBAL ECONOMY GLOBAL IMBALANCES GLOBALIZATION GRADUAL CAPITAL ACCOUNT LIBERALIZATION GROSS CAPITAL FORMATION GROWTH DETERMINANTS GROWTH EQUATION GROWTH IMPACT GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH PROCESS GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH REGRESSIONS GROWTH THEORIES GROWTH THEORY HIGH GROWTH HUMAN CAPITAL IMBALANCE IMBALANCES IMPORTS INCOME INDICATOR VARIABLE INFLATION INFLATION RATE INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL TRADE INVESTMENT DEMAND INVESTMENT OPPORTUNITIES INVESTMENT RATES LAGGED DEPENDENT LEVEL OF INVESTMENT LONG RUN LONG-RUN GROWTH LOW-INCOME COUNTRIES This paper provides empirical evidence that countries in emerging Europe reaped the benefits of international financial integration over the past 12 years by attracting sizeable foreign capital inflows and accelerating medium-term growth. But the aggregate pattern masks substantial heterogeneity across countries; namely, new European Union member states and the European Union candidate countries are different from the European Union neighborhood. The growth benefits are supported from both a flow and a stock perspective in terms of the link between foreign savings and growth. While foreign savings might in part substitute for national savings, the analysis finds that the channel to high growth in these countries is, primarily, through making possible the pursuit of investment opportunities that would otherwise remain unfunded; in turn, this seems to be intimately linked to the opportunities created by European Union membership. Although this conclusion does not disappear if the outlier observations of the credit boom period that preceded the financial crisis are dropped from the sample, it does suggest that these excesses did not play as positive a role for growth. 2012-03-19T18:05:23Z 2012-03-19T18:05:23Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111006170943 http://hdl.handle.net/10986/3604 English Policy Research working paper ; no. WPS 5837 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia |