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Investing in Europe

Objectif

The financial crisis of 2008 quickly turned into a debt crisis of Europe by 2010. On one hand, there are millions of people suffering due to austerity measures, which results in severe cuts both in public and private spending, on the other hand, there are economies which find it, extremely hard to grow. Unfortunately, there is a big dilemma and a self fullfilling probhecy regarding this huge economic crisis. The problem of Europe is simple. There are staggering national debt of european countries, there are huge budget deficits, and shrinking economies do not supply enough money to the system. What is urgently needed is attracting investment to the. However, to pay national debt, governments need to cut spending, which in turn, sharply cuts into the growth of the companies, and which in turn, stops investment to the eurozone due to lack of confidence. This is a deadly loop, which proves harder by the day to get out. There is one point, which every economist and academic agrees upon; that is, Eurozone needs investment that will flow into the private companies. However, world wide investors have other options such as investing in emerging countries. Even though there is no academic rationale, investors put significant amount of their investment to the emerging economies, rather than where it is needed: Europe. Despite an admirable performance of equity markets in emerging economies, the classical portfolio selection rules (such as the mean-variance and stochastic dominance rules) cannot identify a preference between emerging and European markets, creating an inconsistency between investors' asset allocation decision and modern portfolio theory. The main research objective of this project is to use recently developed investment rules and identify specific European markets, sectors and companies as efficient investment alternatives. In a rational framework, this study should in turn create foreign direct investment at least to selected European markets and companies.

Appel à propositions

FP7-PEOPLE-2012-CIG
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Coordinateur

SABANCI UNIVERSITESI
Contribution de l’UE
€ 100 000,00
Adresse
ORTA MAHALLE UNIVERSITE CADDESI N 27 TUZLA
34956 Istanbul
Turquie

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Région
İstanbul İstanbul İstanbul
Type d’activité
Higher or Secondary Education Establishments
Contact administratif
Aslıhan Eran (Mrs.)
Liens
Coût total
Aucune donnée