Regional investment policy impacts on FDI location in Poland (by Gábor Hunya; pp. 1-6 ) Keywords: FDI, investment policy, regional Countries covered: Poland Topics: International Trade, Competitiveness and FDI; Regional Development Creating fiscal space in the European Monetary Union (by Jan Toporowski; pp. 7-10 ) Keywords: EMU, taxation, financial sector Countries covered: European Union Topics: Macroeconomic Analysis and Policy Is there evidence of increasing fragmentation in the banking system of the euro area? (by Olga Pindyuk; pp. 11-13) Keywords: banking system, ...more

Croatia’s EU membership and the dilemma of state aid (by Roman Stöllinger; pp. 1-7) Keywords: state aid, industrial policy, shipyards Countries covered: Croatia Topics: Macroeconomic Analysis and Policy Panel data analysis of the CEECs: tracing growth determinants over time (by Doris Hanzl-Weiss; pp. 8-14) Keywords: panel regressions, growth determinatns Countries covered: CEECs Topics: Macroeconomic Analysis and Policy Japan, the United States and the euro area (by Mario Holzner; pp. 15-18) Keywords: growth, demography Countries covered: Japan, United States, euro ar...more

Political turmoil and early elections in Bulgaria (by Rumen Dobrinsky; pp. 1-4) Keywords: Bulgaria, elections Countries covered: Bulgaria Topics: Other A revival of industrial policy as a growth model for Russia? (by Peter Havlik; pp. 5-6) Keywords: industrial policy, growth model Countries covered: Russia Topics: Macroeconomic Analysis and Policy; International Trade, Competitiveness and FDI The determinants of income polarization at the household and country level across the EU (by Mario Holzner; pp. 7-10) Keywords: income polarization, fiscal policy Countries cove...more

Summary The protracted recession in the euro area will continue to be a drag on the economic growth of most CESEE countries in 2013. By and large, those countries are small open economies held hostage to the excessive fiscal austerity pursued in the euro area and the sluggish progress on the part of its policy-makers in adequately addressing the structural roots of the crisis. At the same time, the private sector demand in the CESEE countries is unlikely to recover substantially in the near term either. Wherever there will be an increase in investments, it will be primarily funded via public...more

Summary The paper undertakes an empirical analytical assessment of some of the determinants of economic growth in the EU during the past decade, with a specific focus on the Central and Eastern European (CEE) members of the EU. The methodology is based on a combination of different statistical methods and techniques including descriptive statistics and stylised facts as well as some widely used empirical models of growth, including the testing of convergence hypotheses and running panel growth regressions. During the decade prior to the global economic and financial crisis, the growth m...more