Remittances were calculated to be approximately $318 billion in 2007, which is an increase of three times the amount of $102 billion in 1995, having these funds to become the second largest type of flows after foreign direct investment. The South-Eastern and Eastern-European countries welcomed 12% of the world’s remittances inflows in 2007, totalling $37 billion. The impact of remittances on financial development of the South-Eastern and Eastern-European countries for the period 1994 – 2007 is studied and it is examined whether these funds contribute to increasing the aggregate level of deposits and credits intermediated by the local banking sector. Financial development is measured in two ways, either as bank deposits or as bank credits to private investors. In order to analyze this effect panel data analysis is performed. Fixed effect regressions are performed to test for the effect of remittances on bank deposits and bank credits to private investors. The findings indicate that remittances have a robust positive effect on promoting financial development in South-Eastern and Eastern-European countries. It is observed that the effect on bank deposits is less robust than the effect on bank credits to private investors.

<p>Remittances were calculated to be approximately $318 billion in 2007, which is an increase of three times the amount of $102 billion in 1995, having these funds to become the second largest type of flows after foreign direct investment. The South-Eastern and Eastern-European countries welcomed 12% of the world’s remittances inflows in 2007, totalling $37 billion.</p><p>The impact of remittances on financial development of the South-Eastern and Eastern-European countries for the period 1994 – 2007 is studied and it is examined whether these funds contribute to increasing the aggregate level of deposits and credits intermediated by the local banking sector. Financial development is measured in two ways, either as bank deposits or as bank credits to private investors.</p><p>In order to analyze this effect panel data analysis is performed. Fixed effect regressions are performed to test for the effect of remittances on bank deposits and bank credits to private investors. The findings indicate that remittances have a robust positive effect on promoting financial development in South-Eastern and Eastern-European countries. It is observed that the effect on bank deposits is less robust than the effect on bank credits to private investors.</p>

This paper estimates a labor demand equation based on the panel data of manufacturing industry in the Central and Eastern European Countries (the Czech Republic, Hungary, Poland, Slovakia, Slovenia, Lithuania, Bulgaria, and Romania) in order to test the effect of domestic factors (wages and output) and international factors (exports, imports, and FDI) on employment during the era of post -transition recovery. The findings indicate that employment does not respond to wages in more than half of the cases. The output elasticity of labor demand is mostly positive, but low, with a number of cases where employment is completely de-linked from output. An impressive speed of integration to the European economic sphere through FDI and international trade has not prevented job losses in the manufacturing industry. While there are very few cases of positive effects, insignificant effects of trade and FDI dominate the findings with some evidence of negative effects as well. (author's abstract) / Series: Department of Economics Working Paper Series

Based on earlier empirical literature for Central and Eastern European Countries this paper attempts to analyze the likely impact of changes in corporate income taxes, in the endowment with production-related material infrastructure and in the institutional environment on Foreign Direct Investment (FDI) - and thus on one channel of regional development in South Eastern European Countries (SEECs). Specifically, we explore the scope for public policy to attract FDI separated by these three policy areas and across the SEECs. Our findings suggest that the potential for SEECs to attract FDI upon changes in these policy areas varies not only substantially between the three policy areas but also within the group of SEECs. Yet, as a general picture, most SEECs have substantial scope to attract FDI by improving their institutional environment as well as their infrastructure endowment. The tax instrument, in contrast, is largely exhausted as a means to attract FDI. Based on these findings some medium- and long-term policy issues are outlined.

The aim of this study is to determine regional income level and disparities in CEECs and Turkey in a comparison of new 26 NUTS-II regions for Turkey with 49 NUTS-II regions of CEECs in the period of 1995 and 2001 by using the indicator of GDP per capita in terms of purchasing power standard. In this study, furthermore, those questions have been discussed: whether the EU is a chance for reducing regional inequalities and growth of the regional wealth in Turkey, and whether Turkey is another thread for the EU regional policy in the future on the enlargement process for the EU. In this study, it is also examined regional income level and disparities in the EU-15, the EU-25, the EU-27, and the EU-28 in case accession of Turkey to the Union. The analyses are carried out for 207 NUTS-II regions of the EU-15, for the EU-25 (248 NUTS-II), for the EU-27 (262 NUTS-II) and for the EU-28 (288 NUTS-II) in terms of the latest available data of GDP per capita in PPS for 2001. The regional income disparities are discussed by using the most well known measures of regional inequality / i.e., Maximum to Minimum Ratio (MMR), Coefficient of Variation (CV), Relative Mean Deviation (Rw) and Theil Index (T). In case accession of Turkey to the EU, her NUTS-II regions would take an advantage of benefit assistance of the EU regional policy instruments along with the CEECs&rsquo / whereas, the seven NUTS-II regions of current three member states would continue to benefit of this assistance, i.e. 3 NUTS-II regions of Greece, 3 for Portugal and only one NUTS-II region for Spain. In the accession-period of Turkey, which will start accession-negotiations with the EU on 3 October 2005, she should adjust her regional policy and regional development projects in light with the EU regional policy and its financial instruments in order to utilize that advantage.

The goal of this thesis is to provide comprehensive set of information about Chinese investment abroad policy and its approach to Eastern Europe. Introduction and first chapters describe China as a developing country which is trying to diversify its large foreign reserves, and actively to penetrate into foreign markets. Then thesis focuses on Chinese regional investment experience. Natural resources and commodities are prime targets for China in Africa. Meanwhile, Western Europe is perceived as an opportunity to gain knowhow and management experience as well as access to developed markets. Last chapters are devoted to the investment partnership between China and CEE countries and are focused on CEE attractiveness for Chinese corporations. China invests in high tech, telecommunication, automotive, machinery, food and construction industries in Eastern Europe.

After 12 years of isolation, the relations between Brussels and Minsk have been thawing starting in the last year. One of the components of the policy of re-engagement is the new initiative adopted by the EU called Eastern Partnership (EaP). This thesis sought to answer following question: what were the main reasons for the change in the EU policy towards Belarus after 2008? In order to answer the research question I formulated two hypotheses. The first hypothesis argues that while the EU has acted according to the normative power expectations up until 2008, after that date a more pragmatic approach in the foreign policy has been at work. The second hypothesis explains this change by the increasing influence of Eastern European countries in realm of decision-making processes within the EU, which resulted in a reformed EU foreign policy towards Belarus.These hypotheses are tested in a qualitative case study of the launching of the Eastern Partnership initiative, seen as the most important instrument that defines the new policy of EU. I will focus on the process of decision–making in regards to the adoption of the new initiative towards the Eastern European countries, using the rational actor model and the theory of formal leadership. The results of the paper point out that the main reason for changing the EU foreign policy towards Belarus were connected to pragmatic interests in the economic and energy areas, which weakened the EU normative claims. However, EU values are still counted as political conditionality has recently re-entered the agenda. Thus, the current foreign policy is two-fold: based on rational model of acting and normative power. Moreover, the EaP is the result of the strengthened position of Eastern European countries in terms of the power hierarchy among EU members, with Poland, and the Baltic States playing an increasingly larger role.

Only one third of the French SMEs are going abroad. However, this option can be an opportunity for the enterprises to extend their growth. The Chinese market is often designated to be the best place to invest. Nevertheless, it is far from France geographically and culturally. Russia and Central/Eastern Europe represent for French SMEs huge and frequently unknown markets, closed to France with all the benefice of their accession to the European Union. These regions have economic and demographic potentials because of their singular history. The study of these countries will show the possible market development in which the French companies and specially SMEs have competences and know-how highly valuable in these markets. Furthermore, the European and French incentives for SMEs and the support of different organizations are additional assets to facilitate the internationalization.

With regard to European Union joining, Romania and Eastern European region have much more attention of the rest of the world. Romania became a phenomenon of Balkan Peninsula during last five years. The aim of the thesis is to describe economic development of Romania before its admission to European Communities and summarize its current economic position in the Union. A part of the thesis is devoted to romanian market environment and assesses especially its attractivity in consideration of the Czech republic.

By using the cross-sectional data from the World Bank Enterprise Survey, this dissertation selects a sample of over 3000 firms from 16 Central and Eastern European countries during the 2008 financial crisis, to assess (1) How effective priori classifications are to identify financially constrained and unconstrained firms in times of economic recession (2) What the main robust determinants are at the firm and country-level that affect SMEs' degree of financing obstacles (3) What experiences and lessons we can learn from 2008 crisis to combat with 2020 and future emerging recession. Our evidence indicates that during the economic crisis happened in 2008, size, industry, ownership and EU dummy are useful priori classifications while distinguishing firms' different degree to financing troubles, although some of other priori classifications appeared on other literature are ineffective. Smaller firms, foreign-owned and firms in manufacturing are more likely to report the financing trouble and have less access to formal sources of finance. However, government-owned firms and firms with adequate educated workers are less likely to be financially constraint. The result confirms that economic freedom, financial market and trade integration all have a significant relationship with SMEs' access to finance. For...