External financing in Central and Eastern European countries after the global financial crisis

• Authors: Ewa Bilewicz

Abstracts

EN

The aim of the paper is to analyse changes in the financial account of the balance of payments in 11 Central and Eastern European countries (CEE) during the years 2007-2017. The analysis comprises changes in the value of the financial account's components. The economic crisis reversed existing tendencies in net capital flows to CEE countries. They transformed from net recipients of capital to providers of capital to the rest of the world. This situation is completely different than the pre-crisis period when CEE countries experienced significant net inflows of mainly direct investment, with capital moving ‘downhill', mostly from richer EU countries. The fall in the surplus on the financial account of the balance of payments was determined mainly by a large drop in net other investments and even their outflow, especially during 2012-2015. The net outflow of capital was also caused by the accumulation of reserves by central banks. In relation to other transactions of the financial account, a slowdown in net capital inflows was recorded. The lowered surplus on the CEE countries' financial balances can have an effect on their external stability, however, they have seen a reemergence of inflows in recent quarters, including in non-FDI flows.

Keywords

EN

balance of payments; financial account; net capital flows; Eastern and Central European Countries

• Publisher: Szkoła Główna Handlowa w Warszawie. Kolegium Zarządzania i Finansów
• Journal: Journal of Management and Financial Sciences
• Year: 2019
• Issue: 38
• Pages: 9-18

Dates

published

2019

Contributors

author

Ewa Bilewicz

• University of Szczecin

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Identifiers

DOI

10.33119/JMFS.2019.38.1

Biblioteka Nauki

20874782