European Parliament Library

Capital flows to EU new member states, does sector destination matter?, Pritha Mitra

Label
Capital flows to EU new member states, does sector destination matter?, Pritha Mitra
Language
eng
Bibliography note
Includes bibliographical references
Illustrations
illustrations
Index
no index present
Literary Form
non fiction
Main title
Capital flows to EU new member states
Nature of contents
dictionariesbibliography
Responsibility statement
Pritha Mitra
Series statement
IMF Country Report, WP/11/67
Sub title
does sector destination matter?
Summary
The recent boom-bust episode in Emerging Europe was largely the product of surges and sudden stops in capital inflows. This paper empirically argues that the sectors into which capital flows determines their impact on GDP growth. Applying data from EU New Member States, it is found that capital flows into real estate have a greater impact on swings in GDP than other sectors, irrespective of a country's exchange rate or fiscal policy. Consequently, as new waves of capital inflows spread to emerging markets, policies may usefully focus on supporting capital inflows towards economic sectors that
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Stylized Facts: Capital Flows and GDP Growth in NMS during the Recent Boom-BustCycle; III. Empirical Analysis: Does it Matter which Sectors Foreign Capital Flows Into?; IV. Conclusion; Appendix I.; Appendix II.; Appendix III.; Footnotes