Luca Papi

How Does the EU Agenda Influence Economies Outside the EU? The Case of Tunisia

Economic and commercial relations between the countries of the southern Mediterranean and the European Union (EU) have been profoundly affected by the recent ‘EU Initiative for the Mediterranean’ and conditioned by the creation of European Monetary Union (EMU). The paper discusses the costs, benefits and prospects of these two processes in terms of their economic consequences on the countries of the southern Mediterranean, and in particular on the Tunisian economy. The association agreement between the EU and Tunisia is assessed in the light of its medium-period implications and of the EU’s enlargement to include the countries of Eastern Europe. With regard to EMU, the paper discusses the influence and effects exerted by introduction of the euro on the Tunisian economy.

Foreign Direct Investment in the Banking Sector: Experiences and Lessons from CEECs

In this paper we use new statistics on Foreign Direct Investment (FDI) in Transitional Economies (TEs) to analyze the issue of foreign ownership in the banking sector. We find that foreign investment is associated with higher profitability; however, a substantial foreign ownership is necessary if there is to be a positive effect on cost efficiency. We also analyze the determinants of FDI location choices in TEs providing new empirical evidence, and distinguishing among different levels of foreign partnership.

The Geographical Network of Bank Organizations: Issues and Evidence for Italy

The evolution of the banking industry has always been affected by recurrent waves of technological, regulatory and organizational changes. All such changes have significant effects on the spatial organization of banks, the interconnectedness of geographical credit markets and the core-periphery structure of banking industry. In this chapter, we review the literature on the effects of geographical distances between the key actors of the credit market (the borrowing firm, the lending branch, the lending bank, and rival banks) on lending relationships and interbank competition. Using the metrics and graph techniques for network analysis we then provide evidence concerning the evolving geographical network of bank organizations in Italy. JEL Classification: G2