Publication overview

Capital flows to eastern Europe and the former Soviet Union

Abstract

The impact of capital flows into the region is of fundamental importance to the economic transition. They are bringing new methods of organisation of business, new technologies, and a powerful influence on the building of financial, regulatory and other institutions. They help establish the financial discipline which is crucial to the effective functioning of a market economy. Thus their impact is far beyond the simple flows of resources. In this paper, we examine some of the determinants and consequences of capital flows into the region.