INVESTMENT BANKING INSTITUTE’S ROLE IN POST-WAR ECONOMIC RECOVERY

Keywords: investment banking, post-war recovery, rule of law, governance quality, structural reforms

Abstract

Investment banking institute are crucial players in the financial system, playing a pivotal role in fostering economic development. This institute’s role becomes even more pronounced when faced with the challenge of facilitating the post-war recovery of a country's economy. Aim of this paper is to articulate the primary ways in which investment banking influences the revitalization of Ukraine's economy following the aftermath of war. Paper employs strategic analysis techniques to uncover the role of investment banking in driving economic growth and to delineate the critical areas where investment banking can lend support to post-war reconstruction efforts in Ukraine. This study explores the contributions of investment banking institutions to economic development, paying particular attention to the challenges of promoting growth in developing nations. Paper presents various ways in which the European Investment Bank has made an impact on a broad spectrum of socio-economic development initiatives. This research underscores the preeminent role played by these institutions in bolstering balanced socio-economic development. Paper stresses that investment banks may implement Impact Finance instrument to cover sectors affected by Russian aggression, such as renewable energy, public housing, and social infrastructure. These financial institutions may introduce new financial instruments to reform the financial system and solve problems like short-termism and financialization. Paper stresses that the key issue is selecting investment banks for partnership in post-war reconstruction based on price criteria, financing terms, and country of origin. This research puts forward an idea that developed countries' funding ensures transparency and creates an environment for business initiatives, while countries with questionable Rule of Law may have questionable results in these terms. The findings of this paper hold significance for a diverse audience, including researchers and analysts focusing on post-war reconstruction, investment banks, international financial institutions, business associations, governmental bodies, and authorities. Future research in this domain could explore contemporary instances of investment banks participating in post-war reconstruction endeavors.

References

Anand B. N., Galetovic P. A. Investment Banking and Security Market Development: Does finance follow industry? IMF Working Paper. 2001. № 01(90). Р. 1–25. DOI: https://doi.org/10.5089/9781451851397.001

Prabhu J. J. A study and analysis of investment banking and regional development among European economy. Financial Markets, Institutions and Risks. 2021. № 5(2). Р. 107–113. DOI: https://doi.org/10.21272/fmir.5(2).107-113.2021

Cavenaile L., Sougné D. Financial development and economic growth: an empirical investigation of the role of banks and institutional investors. Applied Financial Economics. 2012. № 22(20). Р. 1719–1725. DOI: https://doi.org/10.1080/09603107.2012.676731

Abdullah M., Chowdhury M., Karmaker U., Fuszder M. H. R., Shahriar M. A. Role of the dynamics of political stability in firm performance: Evidence from Bangladesh. Quantitative Finance and Economics. 2022. № 6(4). Р. 518–536. DOI: https://doi.org/10.3934/qfe.2022022

Bloch H., Tang S. H. K. The role of financial development in economic growth. Progress in Development Studies. 2003. № 3(3). Р. 243–251. DOI: https://doi.org/10.1191/1464993403ps063pr

Petkovski M., Kjosevski J. Does banking sector development promote economic growth? An empirical analysis for selected countries in Central and South Eastern Europe. Ekonomska Istrazivanja – Economic Research. 2014. № 27(1). Р. 55–66. DOI: https://doi.org/10.1080/1331677x.2014.947107

Balluck K. Investment Banking: Linkages to the Real Economy and the Financial System. Bank of England Quarterly Bulletin. 2015. № 1. Р. 1–19. URL: https://ssrn.com/abstract=2577720

Sabri N. R. The role of banking sector in the Arab economic development. International Journal of Business and Emerging Markets. 2010. № 2(2). Р. 180–192. DOI: https://doi.org/10.1504/ijbem.2010.031690

Carter A. Building an investment market for economic development. Local Economy. 2006. № 21(1). Р. 65–72. DOI: https://doi.org/10.1080/02690940500478084

Оболенський О. Досвід банків розвинутих країн в галузі інвестиційної діяльності і можливості його реалізації в українській економіці. Проблеми і перспективи розвитку банківської системи України. 2004. № 9. С. 204–212. URL: https://essuir.sumdu.edu.ua/bitstream-download/123456789/54329/5/Obolenskyi_state_administration.pdf;jsessionid=C51FAAABF7C6C8D5481B0F0CDD9273A5

Глібко С. Інвестиційна діяльність банків: правовий аспект. Право та інновації. 2014. № 4(8). С. 64–71. URL: https://ndipzir.org.ua/wp-content/uploads/2015/03/Glibko8.pdf

Алексін Г. Стейкхолдерський підхід до повоєнного відновлення економіки України. Глобалізаційні виклики: урядування майбутнього. Матеріали Міжнародної науково-практичної конференції, Київ, 26-27 квітня 2023 р. С. 157–158. URL: https://ipacs.knu.ua/pages/osn/2/news/2039/files/e8f052a9-3ca2-4574-ad95-ec8638583c7f.pdf

Матеріали Європейського інвестиційного банку. URL: https://www.eib.org/en/investor-relations/index

Penna C., Mazzucato M. The Rise of Mission-Oriented State Investment Banks: The Cases of Germany’s KfW and Brazil’s BNDES. SPRU Working Paper Series. 2015. № 2015-26. Р. 1–33. URL: https://www.sussex.ac.uk/spru/swps2015-26

Anand, B. N., & Galetovic, P. A. (2001). Investment Banking and Security Market Development: Does finance follow industry? IMF Working Paper, 01(90), 1–25. DOI: https://doi.org/10.5089/9781451851397.001

Prabhu, J. J. (2021). A study and analysis of investment banking and regional development among European economy. Financial Markets, Institutions and Risks, 5(2), 107–113. DOI: https://doi.org/10.21272/fmir.5(2).107-113.2021

Cavenaile, L., & Sougné, D. (2012). Financial development and economic growth: an empirical investigation of the role of banks and institutional investors. Applied Financial Economics, 22(20), 1719–1725. DOI: https://doi.org/10.1080/09603107.2012.676731

Abdullah, M., Chowdhury, M. a. F., Karmaker, U., Fuszder, M. H. R., & Shahriar, M. A. (2022). Role of the dynamics of political stability in firm performance: Evidence from Bangladesh. Quantitative Finance and Economics, 6(4), 518–536. DOI: https://doi.org/10.3934/qfe.2022022

Bloch, H., & Tang, S. H. K. (2003). The role of financial development in economic growth. Progress in Development Studies, 3(3), 243–251. DOI: https://doi.org/10.1191/1464993403ps063pr

Petkovski, M., & Kjosevski, J. (2014). Does banking sector development promote economic growth? An empirical analysis for selected countries in Central and South Eastern Europe. Ekonomska Istrazivanja – Economic Research, 27(1), 55–66. DOI: https://doi.org/10.1080/1331677x.2014.947107

Balluck, K. (2015). Investment Banking: Linkages to the Real Economy and the Financial System. Bank of England Quarterly Bulletin, 1, 1–19. Available at: https://ssrn.com/abstract=2577720

Sabri, N. R. (2010). The role of banking sector in the Arab economic development. International Journal of Business and Emerging Markets, 2(2), 180–192. DOI: https://doi.org/10.1504/ijbem.2010.031690

Carter, A. (2006). Building an investment market for economic development. Local Economy, 21(1), 65–72. DOI: https://doi.org/10.1080/02690940500478084

Obolenskyi, O. (2004). Dosvid bankiv rozvynutykh krain v haluzi investytsiinoi diialnosti i mozhlyvosti yoho realizatsii v ukrainskii ekonomitsi. Problemy i perspektyvy rozvytku bankivskoi systemy Ukrainy, 9, 204–212. Available at: https://essuir.sumdu.edu.ua/bitstream-download/123456789/54329/5/Obolenskyi_state_administration.pdf;jsessionid=C51FAAABF7C6C8D5481B0F0CDD9273A5

Hlibko, S. (2014). Investytsiina diialnist bankiv: pravovyi aspekt. Pravo ta innovatsii, 4(8), 64–71. Available at: https://ndipzir.org.ua/wp-content/uploads/2015/03/Glibko8.pdf

Aleksin, G. (2023). Steikkholderskyi pidkhid do povoiennoho vidnovlennia ekonomiky Ukrainy. Hlobalizatsiini vyklyky: uriaduvannia maibutnoho. Materialy Mizhnarodnoi naukovo-praktychnoi konferentsii, Kyiv, 26-27 kvitnia 2023 r. 157–158. Available at: https://ipacs.knu.ua/pages/osn/2/news/2039/files/e8f052a9-3ca2-4574-ad95-ec8638583c7f.pdf

European Investment Bank materials. Available at: https://www.eib.org/en/investor-relations/index

Penna, C., Mazzucato, M. (2015). The Rise of Mission-Oriented State Investment Banks: The Cases of Germany’s KfW and Brazil’s BNDES. SPRU Working Paper Series, 2015-26, 1–33. Available at: https://www.sussex.ac.uk/spru/swps2015-26

Article views: 124
PDF Downloads: 69
Published
2023-07-25
How to Cite
Aleksin, G. (2023). INVESTMENT BANKING INSTITUTE’S ROLE IN POST-WAR ECONOMIC RECOVERY. Economy and Society, (53). https://doi.org/10.32782/2524-0072/2023-53-39
Section
FINANCE, BANKING AND INSURANCE