Estonia—When the Problem is the Private Sector

Stephen J. Peachy

Chapter 7 in Financial Systems in Transition:A Flow of Analysis Study of Financial Evolution in Eastern Europe and Central Asia, 2000, pp 129-142 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThis chapter looks at recent Estonian experience in the wake of the volatility in financial markets of 1997 and tries to identify the key financing issues likely to be faced by the authorities if the economy is to secure the rapid investment-led growth envisaged for the run-up to European Union (EU) accession. It is concluded that annual investment-led real growth of 6 percent can only be financed through a combination of strong foreign capital inflows directly to the nonbank/nongovernment sector (NBNGS)—broadly equivalent to the private sector—and continued heavy foreign finance of what would otherwise be unsustainable growth in bank lending. Even for a country in the first wave of accession to the EU, it is not clear that the current world environment will be so accommodating. The chapter therefore goes on to test how much investment and growth would have to be curtailed to achieve a more sustainable financing pattern.

Date: 2000
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789812792266_0007 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789812792266_0007 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789812792266_0007

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().