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THE ROLE OF TRADE OPENNESS IN THE CHINESE INWARD FDI IN CENTRAL AND EASTERN EUROPE

Gabor Fazekas ()
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Gabor Fazekas: Faculty of Economics, University of Pécs, Hungary

Romanian Journal of Regional Science, 2016, vol. 10, issue 1, 100-114

Abstract: The main objective of this paper is to understand how Chinese investments can be associated with the level of trade openness in Central and Eastern Europe. The scientific literature usually emphasizes the positive effects of trade and highlights its role in the ability to attract foreign capital however, the attraction can vary from country to country and sector to sector. In recent study the dependent variable was the Chinese inward FDI stock. The correlation analysis highlighted the fact that there are differences between the Central and Eastern European countries in terms of how the Chinese investors react to the level of trade openness. It was found that Chinese investors’ motivations could be influenced by the independent variables only in a few countries in the region like Bulgaria, the Czech Republic, Estonia, Hungary, Lithuania and Romania.

Keywords: China; Central and Eastern Europe; FDI stock; correlation analysis; trade openness (search for similar items in EconPapers)
JEL-codes: F21 F13 E69 (search for similar items in EconPapers)
Date: 2016
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