Foreign Direct and Portfolio Investment in the Contemporary Globalized World: Should They Be Still Treated Separately?

• Autorzy: Marcin Humanicki , Robert Kelm , Krzysztof Olszewski
• Języki publikacji: EN

Abstrakty

EN

Foreign direct investment (FDI) and foreign portfolio investment (FPI) have been long considered as independent forms of international capital flows. This paper analyzes the mutual relationship between FDI and FPI and attempts to answer the question whether they complement or substitute for each other from a foreign investor's point of view. The paper describes the main characteristics of FDI and FPI in terms of their volatility and profitability. We analyze the long-run and short-run relationships between FDI and FPI using vector error correction (VEC) regressions on data for Poland as it is the largest country in Central and Eastern Europe and receives the lion's share of these two forms of capital in the region. Our investigation suggests that FDI and FPI may be regarded as substitutes. In economically stable periods FDI tends to dominate over FPI but during insecurity and economic distress FPI starts to gain importance.(original abstract)

Słowa kluczowe

EN

Foreign investment; Direct investments; Emerging markets; Econometric modeling; Cointegration

PL

Inwestycje zagraniczne; Inwestycje bezpośrednie; Rynki wschodzące; Modelowanie ekonometryczne; Kointegracja

• Czasopismo: Central European Journal of Economic Modelling and Econometrics (CEJEME)
• Rocznik: 2017
• Tom: 9
• Numer: nr 2
• Strony: 115--135

Twórcy

autor

Marcin Humanicki

• Narodowy Bank Polski

autor

Robert Kelm

• University of Łódź, Poland

autor

Krzysztof Olszewski

• Narodowy Bank Polski; Warsaw School of Economics

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