• Corpus ID: 152963942

The "Addiction" with FDI and Current Account Balance

  title={The "Addiction" with FDI and Current Account Balance},
  author={Jo{\vz}e Mencinger},
The EU new member states (NMS) have been recipients of substantial net capital inflows in the form of FDI. Economic policy makers and development strategists often regard them as the pillar of the development and neglect their potential long run consequences: inevitable deficit in the investment balance. FDI however affects current account balance also indirectly by improving or deteriorating trade balance which might overweigh negative direct effects, moderate them, or add to the deterioration… 

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