FDI in the post-EU accession Baltic Sea Region: A global or a regional concern?

H. Richard Nakamura (), Mikael Olsson and Mikael Lönnborg
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H. Richard Nakamura: Centre for Baltic and East European Studies (CBEES), Södertörn University
Mikael Olsson: Centre for Baltic and East European Studies (CBEES), Södertörn University
Mikael Lönnborg: Centre for Baltic and East European Studies (CBEES), Södertörn University

Baltic Journal of Economics, 2012, vol. 12, issue 2, 89-108

Abstract: This paper investigates the dynamics of FDIs in the Baltic Sea Region (BSR) by applying the Poisson Pseudo-Maximum Likelihood estimation method on a gravity model. In particular, we analyze the influence of macro and spatial factors on investment stock changes and discuss whether the origin of these investments and the 2004 EU enlargement have had any effects on BSR FDIs. Our results suggest that EU enlargement has been significant for FDI activity in the region, and that FDI is basically a regional issue as it tends to be bilateral within the region. However, the same results also suggest that geographic distance is not a significant factor. We conclude that while being traditional in nature, the BSR FDI pattern is undergoing changes towards a lesser degree of geographic bias.

Keywords: Baltic Sea Region; FDI; trade; gravity model; poisson pseudo-maximum likelihood method. (search for similar items in EconPapers)
JEL-codes: C21 C23 F21 F23 R12 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:bic:journl:v:12:y:2012:i:2:p:89-108

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