Foreign Direct Investments, Exports, Unemployment and Economic Growth in the New EU Members - A Panel Data Approach

Nikolaos Dritsakis and Pavlos Stamatiou
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Nikolaos Dritsakis: Department of Applied Informatics, University of Macedonia, Economics and Social Sciences, Thessaloniki
Pavlos Stamatiou: Department of Applied Informatics, University of Macedonia, Economics and Social Sciences, Thessaloniki

Economia Internazionale / International Economics, 2017, vol. 70, issue 4, 443-468

Abstract: Foreign direct investments and exports play an important role in economic growth worldwide. Particularly, foreign direct investments have been considered as one of the best alternatives to fuel economic growth mainly for developing countries. Policy, macroeconomic stability of each country as well as the labor market of an economy are some of the main aspects analyzed by foreign investors before investing in a country. In this paper we study the interdependencies among foreign direct investment, exports, unemployment and economic growth for thirteen new member countries of European Union (EU) for the period 1995-2013. The econometric methodology, based on error correction model is used to analyze the short and long term causal relationship between the examined variables. The main finding of the study is that there is bidirectional long term causal relationship between exports and economic growth and unidirectional long term causal relationship between economic growth and unemployment. Also, the results of the paper show that there is a short run unidirectional causality between exports and foreign direct investments. Investimenti diretti esteri, esportazioni, disoccupazione e crescita economica nei nuovi paesi membri dell’Unione Europea – un approccio panel data Gli investimenti diretti esteri e le esportazioni svolgono un ruolo importante per la crescita economica globale. In particolare gli investimenti diretti esteri sono stati considerati tra le politiche migliori per la crescita economica, soprattutto per i paesi in via di sviluppo. La situazione politica, la stabilità economica ed il mercato del lavoro sono alcuni degli aspetti principali analizzati dagli investitori stranieri prima di effettuare investimenti in un paese. In questo lavoro si studia l’interdipendenza tra investimenti diretti esteri, esportazioni, disoccupazione e crescita economica per tredici nuovi membri dell’Unione Europea nel periodo 1995-2013. Vengono utilizzati modelli error correction per analizzare le relazioni causali di breve e lungo periodo tra le variabili considerate. Il risultato principale di questo studio è che esiste una relazione causale di lungo termine unidirezionale tra crescita economica e disoccupazione. Inoltre, i risultati dello studio mostrano che c’è causalità unidirezionale di breve periodo tra esportazioni e investimenti diretti esteri.

Keywords: Economic Growth; Foreign Direct Investments; Exports; Unemployment; FMOLS; DOLS; Causality (search for similar items in EconPapers)
JEL-codes: C22 C33 E31 E50 H60 O16 (search for similar items in EconPapers)
Date: 2017
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