FDI AND ECONOMIC GROWTH IN CEE COUNTRIES

Lenuta CARP (ceka)
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Lenuta CARP (ceka): Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration

SEA - Practical Application of Science, 2015, issue 7, 21-26

Abstract: The aim of the current paper is to emphasize the correlation between FDI inflows and GDP growth rate in selected countries from Central and Eastern Europe (CEE). The dynamic of FDI inflows and GDP growth rate have been significantly affected by the current economic crisis, which has led to a decrease in foreign capital inflows and a restrained of investment projects. However, macroeconomic imbalances and increased volatilities have determined a strong contraction of GDP growth rates in these economies, except Poland which was the most resilient to worldwide shocks. The results show a unidirectional causality between FDI and GDP growth in all cases, except Hungary. Further analysis will be developed testing the impact of foreign flows volatility on GDP growth.

Keywords: Foreign direct investments (FDI); Economic Growth; Granger Causality; Crisis (search for similar items in EconPapers)
JEL-codes: C21 F21 F60 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2015:i:7:p:21-26

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