This study explores the determinants of sectoral wage dynamics in Croatia, including intersectoral wage linkages. Wage formation in the exporting sectors receives particular focus. Exporters are found to be wage leaders and labor productivity is a more important wage determinant for exporting...

We estimate capital flight from 10 Central and Eastern European countries for the period 1996–2009. Capital flight from the transition economies is mainly an economic phenomenon, driven by differences in interest rates and investors’ perceptions of economic conditions in their countries as...

This study analyzes the competition for foreign direct investment (FDI) among countries at different stages of development. It is assumed that domestic companies in a more-developed country use more capital in production and that wages in a less-developed country are lower. Countries can compete...