Suchergebnisse

The Czech economy has been characterized by a rapidly increasing external income balance deficit since 1998, which was caused by an increasing outflow of FDI earnings. The paper analyses factors, which determine the total amount of FDI earnings in a host economy & their subsequent division into reinvested earnings & repatriated profits. Three main factors are examined: total FDI stock in the economy & its structure, the FDI rate of return & the FDI financial life cycle. Growing total FDI stock, which reaches 51% of Czech GDP, is the most influential factor because the FDI rate of return has been approximately stable exceeding 10%. An outstanding amount of reinvested earnings in the Czech economy negatively influences the current account deficit, which exceeds the GDP 5% benchmark rate, although reinvested earnings do not represent actual financial outflows. Tables, Graphs, References. Adapted from the source document.

The Czech economy was characterized by a high nominal & real appreciation that was caused by great foreign direct investment inflow in 2002. The paper analyzes the effect of the Czech currency appreciation on industrial branches & the industry as a whole using a simple model based on a corporate accounting. The Outcome of the model is then compared with actual y-o-y data of non-financial corporations in 2002. There is significant difference between industrial branches in sensitivity to appreciation. Foreign owned branches are able to limit the negative impact of appreciation, whereas the worst situation is in branches owed only by residents & the public. The property structure, in addition to the labor intensity of production, has had a great effect on corporate finance after the rapid crown appreciation. 3 Tables, 3 Figures, 14 References. Adapted from the source document.