 The Heterogeneous Nature of FDI in Central and Eastern Europe. Impact of the Entry Mode on the Host Country’s Economic GrowthMarcin Humanicki and Krzysztof Olszewski () Czech Journal of Economics and Finance (Finance a uver), 2020, vol. 70, issue 6, 541-565 Abstract: Foreign direct investment (FDI) is considered to have a positive impact on economic growth in the host country. However, there is no consensus in the empirical literature on the growth effects of FDI. One reason may be that many studies are based on aggregated data on capital flows and do not take into account the different modes of entry of a foreign investor. The paper analyses the growth effects of FDI in Central and Eastern European (CEE) countries by distinguishing three entry modes of a foreign investor (greenfield, reinvestment, mergers and acquisitions). Firstly, it provides a literature review on the links between economic growth and FDI. Secondly, it describes the method used to construct data on greenfield FDI and reinvestments. Finally, it shows that in case of the CEE countries there is only an indirect growth effect of FDI (through the accumulation of capital), while for the non-CEE countries a direct positive effect of FDI can be found. Keywords: foreign direct investment; economic growth; Central and Eastern Europe; panel data regressions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:70:y:2020:i:6:p:541-565 Access Statistics for this article More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC. |
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