Suchergebnisse

The capital market is an important source of financing for viable investment projects and further economic development. Development of long-term financial markets is particularly important for transition EU countries, taking into account that stock markets in these countries did not start to operate until the mid-1990s. Despite legislation infrastructure quality, functional training and significant progress in market effectiveness, the capital market in many transition economies may be regarded as shallow, illiquid and nontransparent. At the same time, one can observe the strong development of 'institutional saving', i.e., financial development related to financial institutions like pension funds, investment funds, and insurance companies. The phenomenon of growth of institutional investors is especially important for capital markets in CEE transition countries, including the Republic of Croatia. The goal of this paper is to test the impulse of non-bank financial intermediaries' development, and also the influence of implementing the above-mentioned structure reform on capital markets development in the selected transition countries. By applying a panel data approach on a sample of six CEE countries over the period between 1995 and 2010, we provide further evidence on the specific determinants of emerging European capital markets.

The EU model of market integration, based on financial openness, leads to divergence and sectoral specialization, which makes the convergence of Central and East European EU countries (CEE) in the EU questionable. The idea of the paper is that forms of foreign direct investment (FDI) have a differential effect on the growth and development of countries-i.e., it is assumed that FDI inflows into the manufacturing sector have a greater intensity and impact on economic growth than inflows into the services sector. Therefore, the aim of this paper is to analyze the system determinants and transmission mechanisms of the sectoral structure of FDI inflows on the sample of 10 CEE for the period 1995-2019. Following a critical analysis of previous research, a panel model was constructed in the empirical section. A developed credit market and the purchasing power of residents lead to greater capital inflows into the services sector, while a higher GDP growth rate and a depreciated real exchange rate lead to higher inflows into the manufacturing sector. The conclusion of the paper is that changing the structure of the domestic economy based on clear industrial and investment policies is the best way to attract developmentally efficient FDI.

The paper argues that it is impossible to resolve the public debt problem within the existing economic policy model without changing the conceptual relationship between monetary and fiscal policy, i.e. without reconfirming the relationship between the policies and without strengthening the fiscal policy role. Otherwise, it is believed, the current model leads to a recession, while public debt problem remains unresolved. The existing model does not question the creation and structure of private debt and its effects on public debt, but the attention is given only to irresponsible fiscal policy. Understanding the public debt determinants is a prerequisite for effective public debt management and for private agents' positive expectations. In the paper, several managerial implications of the research results are, also, identified and presented.

The paper argues that it is impossible to resolve the public debt problem within the existing economic policy model without changing the conceptual relationship between monetary and fiscal policy, i.e. without reconfirming the relationship between the policies and without strengthening the fiscal policy role. Otherwise, it is believed, the current model leads to a recession, while public debt problem remains unresolved. The existing model does not question the creation and structure of private debt and its effects on public debt, but the attention is given only to irresponsible fiscal policy. Understanding the public debt determinants is a prerequisite for effective public debt management and for private agents' positive expectations. In the paper, several managerial implications of the research results are, also, identified and presented.