At the height of the COVID-19 crisis, many countries have reduced their countercyclical capital buffer (CCyB) for the first time since its implementation, while also easing monetary policy. In this paper, we exploit this quasi-natural experiment to gauge the combined effects of these two...

This paper investigates the effect of FDI on economic growth conditional on the institutional quality of host countries. We first develop several theoretical arguments to show that institutional heterogeneity may be an explanation for the mixed results of previous empirical studies. Second,...

This paper investigates the effect of FDI on economic growth conditional on the institutional quality of host countries. As we consider institutional heterogeneity to be an explanation for the mixed results of previous empirical studies, we develop several arguments to show that institutional...

The aim of this paper is to empirically investigate the relationship between FDI and domestic investment in a sample of 10 Central and Eastern European countries over the period 1995-2015. We find FDI to lead to a creative destruction phenomenon, with a short-term crowding out effect on domestic...