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THE RELATIONSHIP BETWEEN INWARD FOREIGN DIRECT INVESTMENTS (FDI) AND NATIONAL COMPETITIVENESS OF THE HOST COUNTRY

Milen Velushev ()
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Milen Velushev: Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski

Yearbook of the Faculty of Economics and Business Administration, Sofia University, 2016, vol. 14, issue 1, 17-33

Abstract: The relationship between inward Foreign Direct Investments (FDI) and national competitiveness of the host country is subject of relatively fewer studies. FDI are undoubtedly a factor of economic growth, because of their impact on the rate of investment, but their role for the level of productivity, especially in the case of host countries with other than developed economies is rarely studied. To construct a model that reflects the significance of inward FDI for the national competitiveness of a host country, we created a coefficient measuring the ability of FDI to efficiently use the production factors. With the help of the said coefficient we revealed a trend in the development of the national competitiveness of the Bulgarian economy. In the concluding part of the study we drew conclusions for the use of the coefficient as an indicator for the condition and the ability of the host country economy to increase the level of productivity.

Keywords: foreign direct investments; national competitiveness; real effective exchange rate; tradable and non-tradable sector. (search for similar items in EconPapers)
JEL-codes: F23 F32 O (search for similar items in EconPapers)
Date: 2016
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