EconPapers    
Economics at your fingertips  
 

Foreign Direct Investment Drivers and Growth in Central and Eastern Europe in the Aftermath of the 2007 Global Financial Crisis

Ramona Jimborean and Anna Kelber ()
Additional contact information
Anna Kelber: European Commission

Comparative Economic Studies, 2017, vol. 59, issue 1, 23-54

Abstract: Abstract Our paper provides new insights on the developments and the drivers of foreign direct investment (FDI) in Central and Eastern European countries over the period 1993–2014, whilst taking into account the occurrence of the 2007 and 2011 crises. We apply a panel data general-to-specific approach and show that FDI inflows are driven by both external (i.e. macroeconomic and financial conditions in the euro area, global macroeconomic conditions and global risk environment) and domestic determinants (past FDI, human capital, market size, infrastructure, competitiveness, corporate tax system, risk premium, trade openness, geographical proximity to Western Europe, accession to the European Union and progress in implementing structural reforms). In addition, through a dynamic panel data analysis, we find a positive impact of FDI inflows on economic growth. We show that, despite the severe decline in FDI and real GDP growth rates at the onset of the 2007 crisis, the positive impact of FDI inflows on economic growth has amplified during this crisis, whilst it has become non-significant during the 2011 crisis.

Keywords: Foreign direct investment; Central and Eastern Europe; Economic growth (search for similar items in EconPapers)
JEL-codes: F21 O52 P33 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41294-016-0018-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Foreign direct investment drivers and growth in Central and Eastern Europe in the aftermath of the 2007 global financial crisis (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:59:y:2017:i:1:d:10.1057_s41294-016-0018-9

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-10-21
Handle: RePEc:pal:compes:v:59:y:2017:i:1:d:10.1057_s41294-016-0018-9