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Call for Papers - ECFIN/C/2010/008 - Capital flows to converging European economies

Workshop organised by the Directorate-General for Economic and Financial Affairs of the European Commission

Call for papers

 (reference ECFIN/C/2010/008)

Capital flows to converging European economies

- from boom to drought and beyond

Workshop organized by the Directorate-General for Economic and Financial Affairs of the European Commission

 Brussels, 1 October 2010 

 

The Directorate-General for Economic and Financial Affairs (DG ECFIN) of the European Commission is organizing a one-day workshop on 1 October 2010 in Brussels.

The workshop aims at improving the understanding of the determinants, characteristics and prospects for foreign capital flows into converging European economies, in particular the new EU Member States (NMS).

The real convergence process in Eastern Europe has been significantly driven by financial integration, large capital inflows and a reduction of balance-of-payments constraints. Favourable external financing conditions contributed to a rapid catching-up in many countries, but also to the build-up of imbalances and vulnerabilities that have been starkly exposed by the crisis. While not all NMS have been equally affected, market access has been disrupted in some cases (leading to the need for balanced-of-payments assistance) and remains fragile across the region. Looking beyond the short-term challenge to maintain or restore macrofinancial stability in a highly volatile environment, the crisis raises the general question whether the prevailing model of financially-driven convergence can be sustained in the future, how the financial integration of emerging Europe will operate in a post-crisis world, and which policies could contribute to an orderly management of capital flows.

Against this background, the Commission invites the submission of contributions addressing the topics mentioned hereafter. The workshop will target applied and empirical papers. While the main focus will be on the EU NMS, contributions on European non-EU countries are also welcome as they add to a broader regional view. Papers should preferably concentrate on cross-country and quantitative analyses and address one or more of the following topics:

1. Drivers of capital flows in recent years: Contributions should analyse the role played by global/regional versus country-specific factors highlighting the likely impact of domestic policies (macro, micro and financial sector) on attracting certain types of foreign capital inflows and shaping their sectoral allocation;

2. Capital flows during the crisis: Contributions should try to identify what determines resilience to contagion, which types of capital flows are the most resilient, and where key tension points in the behaviour of capital flows emerged. Issues specifically related to EU integration could also be examined, for instance whether the "EU halo effect" on risk spreads has disappeared and what difference the euro has made for recent EU entrants;  

3. Prospects beyond the crisis: Contributions should evaluate whether the crisis implies a structural shift in investor behaviour/risk pricing and examine possible future trajectories for financial integration, the impact of tighter financing access on real economies and the role that could be played by domestic policies (fiscal, monetary, financial) in ensuring more resilient external financing structures.

 

General information and conditions

The workshop will include six to eight presentations, followed by the comments of discussants and a general exchange of views among the participants.

The final papers will have to be original work created in response to this call for papers and should roughly be 15,000 – 20,000 words in length.

Selected authors will be required to send electronically a full draft of their paper to DG ECFIN by 10 September 2010 and to present it to the workshop. The final version of the paper should be submitted electronically by 15 November 2010.

In accordance with the conditions of the purchase orderpdf(37 kB) Choose translations of the previous link , the Commission intends to pay a fee of € 4,000 per paper of acceptable quality. The Commission will arrange and pay for travel, accommodation and a daily allowance for one speaker per paper to present it at the workshop in Brussels, irrespective of whether the paper is authored or co-authored. The travel arrangements will be made via a travel agency, acting on behalf of the Commission.

 

Submission provisions

We invite the submission of preliminary draft papers (preferred) or extended abstracts (one to two pages) related to the above mentioned issues. Papers can be co-authoredpdf(16 kB) Choose translations of the previous link .

 Annotated outlines or preliminary drafts together with a curriculum vitae (including all co-authors) and signed proxy forms should be submitted electronically to the e-mail address ECFIN-CapFlowsNMS@ec.europa.eu, clearly mentioning in the subject line of the e-mail the topic of the paper. This mailbox is reserved solely for submissions. Submissions sent to other mailboxes or to Commission staff cannot be accepted. No other communication should be addressed to this mailbox.

Deadline for submission: 31 May 2010 (22:00 CET)

Award criteria

 The evaluation of the papers will be based on the following criteria:

  • The clarity of the submission as assessed by the precision with which it (i) explains how the topic will be addressed, (ii) discusses the theoretical and empirical techniques that will be used to analyse specific issues, and (iii) explains the policy relevance of this analysis.
  • The quality of the submission as measured by its potential to provide robust economic analysis that offers value-added vis-à-vis the existing academic literature on the drivers of capital flows in emerging markets and relevance for policy-making.
  • The standing of the author/co-authors as demonstrated by academic excellence and a track record of publishing research on issues related in leading journals. To facilitate this assessment, the submission should include an up-to-date curriculum vitae for the author/co-authors.
  • The potential to form the basis of a fruitful exchange among the workshop participants.

Award process

 The submissions will be evaluated and ranked. The procedure is expected to be completed by mid-July 2010. Candidates will be informed in due time of the outcome of the selection procedure.

Publication and copyright issues

 Conditional on the quality of the papers, they could be published in a volume collecting the workshop proceedings. The Commission will retain the copyright.

Further information

For further information, please contact ECFIN C.3 (ECFIN-C3@ec.europa.eu).

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