This research is focused on the analysis of capital mobility indicators in the EU new member states as capital market union is one of the newest initiative in the EU. We found the most integrated countries are Hungary, the Czech R., Croatia and Estonia. Econometric analysis emphasized the main determinants of capital account openness and of FDI inward stock. The analysis indicates that the level of development, intra-EU trade and FDI inward stock have a positive impact on capital account openness (mobility), while inflation has a negative infl uence. The GDP per capita, intra- EU trade and capital account openness have positive impact on FDI inward stock while inflation and gross fixed capital formation have negative influence. Unexpectedly, fiscal variables and interest rates do not have a significant impact on capital openness. The results show that there is room for improvement in all countries that would enable more favorable access to capital.
The Challenges of Competitiveness in Southeast European Countries
The article examines the problem of competitiveness in Southeast European countries, with a special emphasis on the position of these countries in World Economic Forum rankings of competitiveness, as well on their potential membership in the European Union. The article determines the most problematic factors for doing business in the region. These factors represent the most important determinants of business sector competitiveness and have implications on national competitiveness. A TOWS matrix was created and established the common characteristics (strengths, weaknesses, opportunities and threats) of the countries in the region. The matrix was also used to suggest strategies for increasing competitiveness. A maxi-maxi strategy ("expansionary strategy") was suggested because it represents the best way to utilise the countries' strengths and opportunities. Cross-section analysis established that increasing gross enrolment ratio in tertiary education and direct foreign investments have the most the positive impacts on GCI scores.