CEU Electronic Theses and Dissertations, 2017
| Author | Durovic, Ivana |
|---|---|
| Title | The Intercompany Lending Effects on the Current Account Balance: Case of Former Yugoslav Republics |
| Summary | The thesis quantifies the effect of intercompany lending on the current account balance in the economies that used to be a part of the Socialist Federative Republic of Yugoslavia. The observed transaction represents a controversial part of the Foreign Direct Investments, often criticised for its debt nature and involvement in the tax evasion strategies. However, the data show that in the post-crisis period it represents the driving force of the foreign capital inflow and investments in the observed region. For the purpose of this study novel model averaging approach was employed as it allows cross-country and country-specific analysis, and provides a sound basis for the policy making. Additionally, as a way to overcome the limited data availability problem, and provide an additional robustness check, the panel regression fixed effects for 17 CESEE economies was done. The results of both models are significant and indicate that the observed transaction had a stabilising effect and brought a steady inflow of funds. Finally, obtained coefficients, which differ in magnitude and sign across countries and time, indicate the discrepancies in the level of development in the region and speak in favour of the necessity to implement country-specific policies. |
| Supervisor | Bokros, Lajos |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2017/durovic_ivana.pdf |
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