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Financial impacts of the East-West trade and FDI: A gravity based approach

Project goals

Trade and investment flows on the East-West basis in Europe have been studied from various perspectives including the trade contribution to economic growth, sectoral specialization, effects on labor markets etc. A dynamic analysis of the effects of tradeand investment on sectoral and corporate levels along with financial effects is an aspect that is missing in the field, and in this project we aim to address these issues. In addition to trade, we argue that foreign direct investment (FDI) can be tracedas an origin of trade flows. Companies established on the basis of the FDI are very frequently projected and built as primarily export production facilities. As a fundamental research contribution we would extend gravity model type specification to account for effect on sectoral and corporate levels. Estimations of these extensions with real data would deliver empirical assessment and a dynamic analysis of the effects of trade and investment on sectoral and corporate levels along with financial effects.

Keywords

corporateforeigntradeflowsforeigndirectinvestmentsectoralcorporateleveleffectfinancialeffectsEast-Westtrade

Public support

  • Provider

    Czech Science Foundation

  • Programme

    Standard projects

  • Call for proposals

    Standardní projekty 15 (SGA02012GA-ST)

  • Main participants

  • Contest type

    VS - Public tender

  • Contract ID

    P403-12-0080

Alternative language

  • Project name in Czech

    Finanční dopady obchodu a investic Východ-Západ na základě gravitačního modelu

  • Annotation in Czech

    Obchodní a investiční toky na bázi Východ-Západ v Evropě byly analyzovány z různých hledisek včetně vlivu obchodu na hospodářský růst, sektorovou specializaci či pracovní trhy. Pohled, jenž v tomto oboru chybí, je dynamická analýza vlivu obchodu a investic na sektorové a korporátní úrovni spolu s příslušnými finančními efekty. V tomto projektu chceme tato témata analyzovat. Jako doplněk k obchodu samotnému stavíme hypotézu, že přímé zahraniční investice (PZI) je možné považovat také za původ obchodníchtoků. Podniky založené na bázi PZI jsou často z pohledu výroby projektovány jako primárně exportně zaměřené. Jako přínos základnímu výzkumu rozšíříme specifikaci gravitačního modelu tak, abychom zachytili efekty na sektorové a korporátní úrovni. Estimacetěchto modelů na reálných datech pak tvoří empirické hodnocení a dynamickou analýzu vlivu obchodu a investic na sektorové a korporátní úrovni spolu s příslušnými finančními efekty.

Scientific branches

  • R&D category

    ZV - Basic research

  • CEP classification - main branch

    AE - Management, administration and clerical work

  • CEP - secondary branch

    AH - Economics

  • CEP - another secondary branch

  • 50201 - Economic Theory
    50202 - Applied Economics, Econometrics
    50203 - Industrial relations
    50204 - Business and management
    50205 - Accounting
    50206 - Finance
    50602 - Public administration
    50603 - Organisation theory

Completed project evaluation

  • Provider evaluation

    V - Vynikající výsledky projektu (s mezinárodním významem atd.)

  • Project results evaluation

    This is a three-year project having been solved by a team of 3 researchers. The team achieved sound research results in the field of international trade and FDI in the EU and dissertation and Master thesis have been defended in connection to the project.Publication outputs include 7 articles in journals with impact factor, with 3 articles published abroad. No problems were found in funding.

Solution timeline

  • Realization period - beginning

    Jan 1, 2012

  • Realization period - end

    Dec 31, 2014

  • Project status

    U - Finished project

  • Latest support payment

    Mar 31, 2014

Data delivery to CEP

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

  • Data delivery code

    CEP15-GA0-GA-U/01:1

  • Data delivery date

    May 22, 2015

Finance

  • Total approved costs

    2,534 thou. CZK

  • Public financial support

    2,534 thou. CZK

  • Other public sources

    0 thou. CZK

  • Non public and foreign sources

    0 thou. CZK

Basic information

Recognised costs

2 534 CZK thou.

Public support

2 534 CZK thou.

100%


Provider

Czech Science Foundation

CEP

AE - Management, administration and clerical work

Solution period

01. 01. 2012 - 31. 12. 2014