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

Jakub Krawczyk , Szymon Filipczak

Abstract

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
Author Jakub Krawczyk (UEP)
Jakub Krawczyk,,
- Poznań University of Economics and Business
, Szymon Filipczak (UEP)
Szymon Filipczak,,
- Poznań University of Economics and Business
Journal seriesEconomics and Business Review, [Poznan University of Economics Review], ISSN 2392-1641, e-ISSN 2450-0097, [1643-5877], (B 15 pkt)
Issue year2015
Vol1 (15)
No2
Pages130-148
Publication size in sheets0.95
Keywords in Englishinternational finance, current account, investments, interest rate, capital flows.
URL http://www.ebr.edu.pl/pub/2015_2_130.pdf
Languageen angielski
File
2015_2_130.pdf 1.08 MB
Score (nominal)15
ScoreMinisterial score = 15.0, 31-03-2019, ArticleFromJournal
Ministerial score (2013-2016) = 15.0, 31-03-2019, ArticleFromJournal
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