Kathuria, Sanjay2012-05-252012-05-252008978-0-8213-7472-6https://hdl.handle.net/10986/6446The report suggests that improving and sustaining export performance and thereby gross domestic product (GDP) growth will require sustained improvement in foreign direct investment (FDI) inflows, pointing again to the need for significant structural reform. Despite recent increases, FDI inflows in South East Europe 5 (SEE5) remain low and below potential. The onus for encouraging FDI falls on structural reforms, given the above limits on both fiscal and monetary policy. Deeper integration within Central European free trade area (CEFTA) countries will increase market size, improve service quality, and help attract FDI. Deeper integration among SEE countries such as through the completion of the implementation of CEFTA 2006, the reduction of border frictions through the establishment of a single management of Border crossing points, the regionalization of the rules of origin among CEFTA 2006 countries, and the expansion of SEE participation in pan European/Mediterranean cumulating of origin arrangements (an ongoing process) will contribute to market contestability and the development of a larger market, thereby helping to attract FDI. Deeper integration among CEFTA countries in services could also contribute to improving service quality significantly, thereby enhancing the overall productivity of the economies. This report mentions several areas, in different sectors, where there can be opportunities for regional harmonization and cooperation, including those areas where the agenda is defined by commitments to the acquis.en-USCC BY 3.0 IGOACCOUNTINGADJUSTMENT MECHANISMANTI-COMPETITIVE PRACTICESATMBALANCE OF PAYMENTSBANK DEPOSITSBANK LENDINGBANKING SUPERVISIONBENCHMARKINGBENCHMARKSBINDING CONSTRAINTSBONDSBUSINESS CLIMATEBUSINESS ENVIRONMENTCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INFLOWSCAPITAL INVESTMENTCOMMODITIESCOMPETITIVE MARKETCOMPETITIVENESSCONSUMER CREDITSCONTRIBUTIONCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCORPORATE SAVINGSCOST OF LABORCOUNTRY MARKETSCURRENCYCURRENCY BOARDCURRENCY BOARD ARRANGEMENTCURRENCY BOARDSCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT BALANCESCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT TRANSACTIONSCUSTOMS UNIONDEBTDEBT REDUCTIONDISECONOMIES OF SCALEDOMESTIC CURRENCYDOMESTIC MARKETSECONOMIC COOPERATIONECONOMIC INTEGRATIONEMERGING-MARKETENTERPRISE PERFORMANCEEQUILIBRIUMEQUITY INVESTMENTEXCHANGE CONTROLSEXCHANGE RATEEXCHANGE RATE REGIMEEXCHANGE RATE REGIMESEXCHANGE RATESEXPENDITUREEXPORT GROWTHEXPORT PERFORMANCEEXPORTERSEXPORTSEXTERNAL DEBTEXTERNAL DEFICITSEXTERNAL FINANCESEXTERNAL INDEBTEDNESSFINANCIAL INTEGRATIONFINANCIAL RESOURCESFINANCIAL SECTORFIRM GROWTHFISCAL DEFICITSFISCAL POLICIESFISCAL POLICYFIXED COSTSFORECASTSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN DIRECT INVESTMENTFOREIGN INVESTORFOREIGN INVESTORSFREE TRADEFREE TRADE AGREEMENTFREE TRADE AGREEMENTSFUTURE GROWTHGDPGDP PER CAPITAGOVERNMENT EXPENDITUREGOVERNMENT EXPENDITURESGOVERNMENT FINANCEGOVERNMENT INTERVENTIONGOVERNMENT SAVINGSGROSS DOMESTIC PRODUCTGROSS NATIONAL SAVINGSGROWTH POTENTIALGROWTH RATEGROWTH RATESHARMONIZATIONHOUSEHOLD INCOMESHOUSEHOLD SAVINGSHUMAN CAPITALHUMAN CAPITAL DEVELOPMENTHUMAN DEVELOPMENTINCOMEINCOME LEVELINCOME LEVELSINCOME TAXESINCOMESINDIVIDUAL MARKETSINITIAL PUBLIC OFFERINGINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCIAL STATISTICSINVESTMENT CLIMATEINVESTMENT DECISIONINVESTMENT RATEINVESTMENT RATESINVESTOR CONFIDENCEIPOJOB CREATIONJUDICIAL SYSTEMLABOR FORCELARGE BUSINESSLIQUIDITYLITERACYLOANMACROECONOMIC CONTEXTMACROECONOMIC STABILITYMACROECONOMIC VARIABLESMACROECONOMIC VULNERABILITIESMARKET CONDITIONSMARKET COUNTRIESMARKET SHARESMARKET SIZEMATHEMATICSMONETARY FUNDMONETARY POLICYMULTILATERAL TRADENATURAL RESOURCENET EXPORTSOPEN ECONOMYOUTPUTOUTREACH PROGRAMOVERVALUATIONOWNERSHIP STRUCTURESPENETRATION RATESPER CAPITA INCOMEPERFORMANCE DATAPERSONAL INCOMEPOLICY RESPONSEPOLITICAL STABILITYPORTFOLIOSPOVERTY ALLEVIATIONPOVERTY LEVELSPOVERTY RATESPRIVATE INVESTMENTPRIVATE SAVINGSPRIVATE SECTOR INVESTMENTPRIVATIZATIONPRIVATIZATIONSPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTIVITYPRODUCTIVITY GROWTHPROFITABILITYPROTECTIONISMPUBLIC SAVINGSPUBLIC-PRIVATE PARTNERSHIPRATE OF GROWTHREAL GDPREAL INTERESTREAL INTEREST RATEREGIONAL INTEGRATIONREGIONAL TRADEREGULATORSREGULATORY FRAMEWORKREGULATORY PRACTICESREMITTANCESRETURNRETURNSRISK PREMIUMSAVINGS RATESSINGLE MARKETSKILL DEVELOPMENTSKILLED WORKERSSMALL COUNTRIESSMALL COUNTRYSOVEREIGN RATINGSTOCKSSUSTAINABLE GROWTHTAXTAX RATESTAXATIONTECHNICAL EDUCATIONTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYTRADE BALANCETRADE DEFICITSTRADE DIVERSIONTRADE LIBERALIZATIONTRADE POLICYTRADINGTRANSITION COUNTRIESTRANSPARENCYTREATYUNDERVALUATIONUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVOLUNTARY UNEMPLOYMENTWAGEWAGE DIFFERENTIALSWAGE GAPWAGESWORK FORCEWORLD DEVELOPMENT INDICATORSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/978-0-8213-7472-6