"Financing Growth Model Change in Europe's Periphery"
Congratulations to Professor Dora Piroska, who has just won a two-year research grant from the Austrian Science Foundation.
The project aims to identify long-term sources of finance in Eastern Europe and match them with economic adjustment strategies. To be carried out in collaboration with Rachel Epstein from the University of Denver, Josef Korbel School of International Studies. In-depth qualitative research is designed for the cases of Estonia, Poland, Slovakia, Hungary, Slovenia, and Romania.
Growth models on the European periphery are running up to structural constraints that demand transformation. Shortages in the supply of labor, digitalization in manufacturing, and climate change represent the key challenges to their FDI-led growth models. Growth model transformation requires long-term financial resources. However, due to restructuring in global financial markets, Western banks and their Eastern subsidiaries no longer finance long-term investment into the real economy. Therefore, Eastern actors must vitalize new financial channels. However, different forms of finance allow different kinds of economic adjustment possible. This research matches financial channels with adjustment strategies on Europe’s Eastern periphery.