Capital flows, EU integration and the global financial crisis: an empirical analysis

Ahmet Ihsan Kaya, Jakob de Haan*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

2 Citations (Scopus)
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We investigate the impact of European Union (EU) integration on capital flows to prospective new EU member states. Using annual data between 1992 and 2020, our results suggest that although EU integration increased net capital flows before the Global Financial Crisis (GFC), it was not able to shield countries from the general decline in capital flows that occurred after the GFC. Furthermore, the results show that the impact of EU integration mainly runs through improved institutional quality. We also find considerable heterogeneity in the drivers of different types of capital flows (FDI, portfolio investments, and other capital flows) that we consider.

Original languageEnglish
Pages (from-to)1025-1049
Number of pages25
JournalJournal of Applied Economics
Issue number1
Publication statusPublished - 2022


  • C33
  • Capital flows
  • European Union integration
  • F21
  • F36
  • fixed effects panel data model
  • global financial crisis

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