Spatial competition for FDIs in Southeast Europe

Marjan Petreski ()

Economics Bulletin, 2025, vol. 45, issue 3, 1598 - 1609

Abstract: This paper investigates the spatial dynamics of foreign direct investment (FDI) in Southeast Europe, focusing on whether FDI inflows in one country complement or compete with those in neighboring economies. Using spatial econometric models and panel data from 2014 to 2023 across seven countries, the analysis reveals strong competitive effects, where FDI in one country often reduces inflows in others. Sectoral specialization and economic fundamentals also shape FDI patterns. The findings corroborate the need for coordinated regional policies to mitigate harmful competition and foster balanced, sustainable investment across the region.

Keywords: Spatial Dynamics; Foreign Direct Investment; Southeast Europe (search for similar items in EconPapers)
JEL-codes: C3 F2 (search for similar items in EconPapers)
Date: 2025-09-30
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http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P139.pdf (application/pdf)

Related works:
Working Paper: Spatial Competition for FDIs in Southeast Europe (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-25-00301

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