The Impact of Economic Sentiments on Foreign Direct Investments

Milena - Jana Schank ()
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Milena - Jana Schank: West University of Timisoara

Ovidius University Annals, Economic Sciences Series, 2016, vol. XVI, issue 2, 605-610

Abstract: The main purpose of this study is the estimation of the impact of subjective determinants on foreign direct investments. Thus, by applying an econometric model, the volume of foreign direct investments is considered to be a dependent variable and the gross domestic product (GDP), the trade openness and the Economic Sentiment Indicator are considered to be independent variables for Germany, Finland, Italy, Netherlands and Great Britain, during thirty years (1985-2014). The main results indicate the fact that between investors’ sentiments and their investment decisions is an inverse relationship only in case of Italy and Great Britain due to the cultural specifications met in these states in which the emotional factors seem to prevail the rational ones.

Keywords: foreign direct investments; sentiments; gross domestic product; return (search for similar items in EconPapers)
JEL-codes: F21 G02 G11 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xvi:y:2016:i:2:p:605-610

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