Investments and Long-term Real Interest Rate in Poland : Study of Investment Structure, Current Account and their Correlation with Long-term Real Interest Rates

• Autorzy: Jakub Krawczyk , Szymon Filipczak
• Języki publikacji: EN

Abstrakty

EN

One of the effects of the globalization of financial markets is unhampered international capital flows that can be freely reallocated amongst different countries. Considering that the investor's aim is to look for the most profitable investment opportunities, they have natural inducement to invest in emerging economies. Taking into account differences in the level of interest rates between Poland and developed economies we claim that the contribution of foreign capital in domestic investments decreases the cost of capital in Poland. The two main aims of this paper are to identify crucial channels of foreign capital flows to Poland and to find out whether co-financing by foreign investment in Poland influences the domestic cost of capital (long-term real interest rate). Our findings, based on empirical analysis, appear to confirm that there is a connection between the structure of investors and the cost of capital.(original abstract)

Słowa kluczowe

EN

International finance; Transaction account; Investment; Capital flows

PL

Finanse międzynarodowe; Rachunek bieżący; Inwestycje; Przepływy kapitałowe

• Czasopismo: Economics and Business Review
• Rocznik: 2015
• Tom: 1 (15)
• Numer: nr 2
• Strony: 130--148

Twórcy

autor

Jakub Krawczyk

• Poznań University of Economics

autor

Szymon Filipczak

• Poznań University of Economics

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Identyfikatory

DOI

10.18559/ebr.2015.2.7