FDI boosts external balances: IMF paper

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An IMF paper published in June shows foreign direct investment in the tradable sectors of central eastern and southeastern Europe led to a significant improvement in their external balances.

Yuko Kinoshita, the paper's author, investigates whether the build-up in external imbalances are linked to the sectoral composition of foreign direct investment. Kinoshita says in the run-up to the global crisis, countries in central eastern and southeastern Europe attracted large capital inflows and built

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