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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.

Access to Finance --- Achieving Shared Growth --- Currencies and Exchange Rates --- Economic Theory & Research --- Emerging Markets --- External vulnerability --- Finance and Financial Sector Development --- Financial frictions --- Foreign capital --- Income convergence --- Macroeconomics and Economic Growth

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The causes and consequences of foreign direct investment (FDI) in developing countries remains a subject of debate among researchers and policymakers alike. The authors use international data and a new micro-data set of firms in thirteen Southern African Developing Countries (SADCs) to investigate the benefits and determinants of FDI in this region. FDI appears to have facilitated local development in the SADC region. Foreign firms tend to perform better than domestic firms, tend to be larger, are located in richer and better-governed countries and in countries with more competitive financial intermediaries, and they are more likely to export than domestic firms. They also exhibit positive spillover effects to domestic firms. Relying on a standard model to predict the country-level FDI inflows per capita, the authors find that SADC is attracting their expected level of FDI inflows, at least relative to its income level, human capital, demographic structure, institutions, and economic track record. There are some differences between SADC and the rest of the world in FDI behavior: in SADC, the income level is less important and openness more so. The authors use two comparison groups to compare with SADC to shed light on why other regions have attracted more FDI per capita than SADC. The factors that explain SADC's low FDI inflows are economic fundamentals (e.g., previous growth rates, average income, phone density, and the adult share of population).

Advanced economies --- Debt Markets --- Demographic --- Developing countries --- Economic development --- Economic Theory & Research --- Emerging Markets --- Finance and Financial Sector Development --- Financial intermediaries --- Firm performance --- Foreign capital --- Foreign Direct Investment --- Foreign firms --- Foreign ownership --- Growth rates --- Human capital --- Income --- Institutional environment --- International Economics and Trade --- Investment and Investment Climate --- Investment climate --- Macroeconomics and Economic Growth --- Private Sector Development --- Regional integration --- Sales growth --- Technology transfer --- Track record

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The causes and consequences of foreign direct investment (FDI) in developing countries remains a subject of debate among researchers and policymakers alike. The authors use international data and a new micro-data set of firms in thirteen Southern African Developing Countries (SADCs) to investigate the benefits and determinants of FDI in this region. FDI appears to have facilitated local development in the SADC region. Foreign firms tend to perform better than domestic firms, tend to be larger, are located in richer and better-governed countries and in countries with more competitive financial intermediaries, and they are more likely to export than domestic firms. They also exhibit positive spillover effects to domestic firms. Relying on a standard model to predict the country-level FDI inflows per capita, the authors find that SADC is attracting their expected level of FDI inflows, at least relative to its income level, human capital, demographic structure, institutions, and economic track record. There are some differences between SADC and the rest of the world in FDI behavior: in SADC, the income level is less important and openness more so. The authors use two comparison groups to compare with SADC to shed light on why other regions have attracted more FDI per capita than SADC. The factors that explain SADC's low FDI inflows are economic fundamentals (e.g., previous growth rates, average income, phone density, and the adult share of population).

Advanced economies --- Debt Markets --- Demographic --- Developing countries --- Economic development --- Economic Theory & Research --- Emerging Markets --- Finance and Financial Sector Development --- Financial intermediaries --- Firm performance --- Foreign capital --- Foreign Direct Investment --- Foreign firms --- Foreign ownership --- Growth rates --- Human capital --- Income --- Institutional environment --- International Economics and Trade --- Investment and Investment Climate --- Investment climate --- Macroeconomics and Economic Growth --- Private Sector Development --- Regional integration --- Sales growth --- Technology transfer --- Track record

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China is now the world's largest destination of foreign direct investment (FDI), despite assessments highlighting its institutional deficiencies. But this FDI inflow corresponds closely to predicted FDI flows into China from a model that predicts FDI inflow based on government quality indicators and controls and is estimated across a sample of other weak-institution countries. The only real discrepancy is that, if government quality is measured by constraints on executive power, China receives somewhat more FDI than the model predicts. This might reflect an underestimation of the strength of these constraints in China, a unique institutional setting for FDI operations, FDI based on expected future institutional improvements, or a unique Chinese model of development. The authors conclude that Ockham's razor disfavors the last. They also note that FDI may be elevated because Chinese institutions protect foreign firms better than domestic ones.

Bank Policy --- Bureaucratic Quality --- Contracts --- Country Risk --- Debt Markets --- Economic Theory and Research --- Emerging Markets --- Exchange --- Finance --- Finance and Financial Sector Development --- Financial Literacy --- Fixed Investment --- Foreign Capital --- Foreign Direct Investment --- Foreign Investors --- Future --- Global Business --- Good --- Interest --- International Economics & Trade --- Investment and Investment Climate --- Investors --- Labor Policies --- Law and Development --- Legal Products --- Macroeconomics and Economic Growth --- Political Economy --- Private Property --- Private Sector Development --- Property --- Property Rights --- Public Investment --- Public Sector Corruption and Anticorruption Measures --- Rule of Law --- Social Protections and Labor

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Following an unprecedented economic boom fed by foreign investment, the Russian Revolution triggered the worst sovereign default in history. Bankers and Bolsheviks tells the dramatic story of this boom and bust, chronicling the forgotten experiences of leading financiers of the age.Shedding critical new light on the decision making of the powerful personalities who acted as the gatekeepers of international finance, Hassan Malik narrates how they channeled foreign capital into Russia in the late nineteenth and early twentieth centuries. While economists have long relied on quantitative analysis to grapple with questions relating to the drivers of cross-border capital flows, Malik adopts a historical approach, drawing on banking and government archives in four countries. The book provides rare insights into the thinking of influential figures in world finance as they sought to navigate one of the most challenging and lucrative markets of the first modern age of globalization.Bankers and Bolsheviks reveals how a complex web of factors-from government interventions to competitive dynamics and cultural influences-drove a large inflow of capital during this tumultuous period in world history. This gripping book demonstrates how the realms of finance and politics-of bankers and Bolsheviks-grew increasingly intertwined, and how investing in Russia became a political act with unforeseen repercussions.

Finance --- Revolution (Soviet Union : 1917-1921) --- 1917-1921 --- Soviet Union --- Soviet Union. --- Economic conditions. --- Foreign economic relations. --- History --- 1905 Revolution. --- 1906 loan. --- 1918 Bolshevik default. --- Bolshevik Revolution. --- Bolshevik coup. --- Bolshevik ideology. --- Bolsheviks. --- First World War. --- Panic of 1907. --- Russian Empire. --- Russian Government Loan of 1906. --- Russian Revolution. --- Russian debt. --- Russian economy. --- Russian financial system. --- Russian government. --- Russian investment. --- Russian markets. --- Russian railroad construction. --- Sergei Witte. --- Trans-Siberian Railway. --- Western investment boom. --- armaments buildup. --- bankers. --- banking. --- boom. --- bust. --- cultural influence. --- debt default. --- default. --- domestic debt markets. --- domestic tensions. --- economic crisis. --- foreign bankers. --- foreign capital markets. --- foreign investors. --- geopolitics. --- government intervention. --- international capital flows. --- interrevolutionary rally. --- investment. --- investor decision making. --- loans. --- patriotism. --- political instability. --- political tensions. --- sovereign default. --- state-led industrialization. --- strategic errors. --- violence.