Artikel

Foreign direct investment inflow dynamics: The case of central and eastern Europe

This study investigates the dynamics of foreign direct investment (FDI) inflows into Central and Eastern European countries (CEECs) using panel data (1994-2020) analysis methods such as fixed effects, fully modified ordinary least squares (FMOLS) and random effects. Specifically, the study examined what factors could account for the mixed pattern of FDI inflows into CEECs. The mixed results from the existing empirical literature on FDI inflow dynamics triggered the undertaking of this study to contribute to the ongoing debate on the subject. The study notes that infrastructural development, economic growth and domestic investment had a significant positive influence on FDI across all three panel data analysis methods. Other variables that were found to have had a significant positive effect on FDI include (1) complementarity between infrastructural and financial development (fixed effects, random effects), (2) trade openness (fixed effects) and (3) savings (random effects, FMOLS). A significant negative impact of the exchange rate on FDI was observed under the FMOLS. CEECs are therefore urged to implement policies to increase infrastructural development, financial development, trade openness and savings to enhance the inflow of FDI. Future studies should investigate the minimum threshold levels of the explanatory variables of FDI.

Sprache
Englisch

Erschienen in
Journal: Comparative Economic Research. Central and Eastern Europe ; ISSN: 2082-6737 ; Volume: 26 ; Year: 2023 ; Issue: 1 ; Pages: 45-63

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
International Investment; Long-term Capital Movements
Economic History: Government, War, Law, International Relations, and Regulation: Europe: 1913-
Thema
foreign direct investment
Central and Eastern Europe
panel data

Ereignis
Geistige Schöpfung
(wer)
Tsaurai, Kunofiwa
Ereignis
Veröffentlichung
(wer)
Lodz University Press
(wo)
Lodz
(wann)
2023

DOI
doi:10.18778/1508-2008.26.03
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Tsaurai, Kunofiwa
  • Lodz University Press

Entstanden

  • 2023

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