| Description |
1 online resource (31 pages) : color illustrations |
| Series |
IMF working paper ; WP/10/92 |
|
IMF working paper ; WP/10/92.
|
| Contents |
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Stylized Facts of Different Growth Models in Central and Eastern Europe; A. Clusters of External Vulnerability; 1. External Vulnerability Clusters; B. Stylized Facts; 2. Economic Growth Record; 3. Transition Indicators and Institutional Quality; 4. Capital Flows, Credit, and Domestic Demand; 5. External Sector Indicators; 6. Policy Indicators; III. Joint Determination of Economic Growth and External Vulnerability; A. Growth-Vulnerability Nexus; 7. Growth-Vulnerability Track Record |
|
B. Potential Factors Determining the Growth ModelC. Econometric Methodology; D. Estimation Results; 1. Estimation Results for the Multinomial Logit Model; 2. Relative Risk Ratios from the Estimated Model; IV. Beyond the Crisis: Two Case Studies; 3. Slovakia and Croatia: Pre-Crisis Characteristics; 8. Slovakia: Predicted Probability of Growth-Vulnerability Clusters; 9. Croatia: Predicted Probability of Growth-Vulnerability Clusters; V. Policy Implications; Appendix I. Multivariate Hierarchical Cluster Analysis; References; Footnotes |
| Summary |
Focusing on the nexus between economic growth and buildup of external vulnerabilities, this paper provides a systematic account of different growth strategies followed in Central and Eastern Europe in 2000-08 and then uses this growth diagnostics to derive implications for the post-crisis recovery. The main findings point to three policy lessons for improving growth sustainability. First, greater reliance on tradable sectors should be the cornerstone of the future growth model. Second, enhancing domestic sources of bank credit funding would contribute to mitigation of external vulnerabilities and make domestic financial system more resilient to global financial shocks. Third, prudential and macroeconomic policies will have to be more proactive in managing capital inflows, including funneling these inflows into investment in the export-oriented industries |
| Bibliography |
Includes bibliographical references |
| Subject |
Financial crises
|
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Economic development -- Europe, Central
|
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Economic development -- Europe, Eastern
|
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Economic development
|
|
Financial crises
|
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Central Europe
|
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Eastern Europe
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| Form |
Electronic book
|
| Author |
International Monetary Fund. European Department, issuing body.
|
| ISBN |
1283559218 |
|
9781283559218 |
|
9781452766188 |
|
1452766185 |
|
9781451982565 |
|
1451982569 |
|
