Trends of international portfolio investment flows in EU member states from Southеast Europe: To where does the money flow?

Stefan Petranov and Dimitar Zlatinov
Authors registered in the RePEc Author Service: Стефан Петранов

MPRA Paper from University Library of Munich, Germany

Abstract: In the present article, we study a trend that has been observed in recent years - financial resources that could be invested in the development of “catching up” EU Member States in Southeast Europe (SEE) are invested abroad, and support already developed economies, particularly in the euro area. We find that such a trend is likely to continue in the short to medium run due to weaknesses in the business environment and underdevelopment of local capital markets in Bulgaria, Croatia, Cyprus, Greece, and Romania. Therefore, we study the subsequent effects on these economies and how the functioning of the Capital Markets Union (CMU) could moderate this trend. We conclude that the CMU initiatives have eased access to market-based financing and have widened the scope for entrepreneurship. However, these opportunities have so far been exploited to a minimal extent in the SEE region.

Keywords: financial markets; portfolio investment; capital flows; SEE countries; Capital Markets Union (search for similar items in EconPapers)
JEL-codes: F32 F36 G15 (search for similar items in EconPapers)
Date: 2023, Revised 2023
References: Add references at CitEc
Citations:

Published in European Review of Service Economics and Management 2.16(2023): pp. 91-122

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/123631/4/MPRA_paper_123631.pdf original version (application/pdf)

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:pra:mprapa:123631

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).