Foreign Investments and Institutional Convergence in South-eastern Europe

Eleni A. Kaditi

International Economic Journal, 2013, vol. 27, issue 1, 109-126

Abstract: Foreign investments are in the focus of most governments around the world. In order to be able to set a policy agenda that is successful in promoting FDI, it is necessary to understand the determinants of foreign investments. This paper examines whether, and to what extent, sound institutions and the degree of regulation deter or attract FDI flows in four economies of south-eastern Europe. In a dynamic panel analysis, a broad set of institutional and regulatory variables that may affect the decision of foreign investors to undertake investment projects in this region is examined, using firm-level data. Analysis shows that the quality of the institutional environment significantly influences foreign capital. Governments in this region should, therefore, focus primarily on creating an effective legal system, having relatively stable political and economic conditions.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/10168737.2012.682076 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:intecj:v:27:y:2013:i:1:p:109-126

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RIEJ20

DOI: 10.1080/10168737.2012.682076

Access Statistics for this article

International Economic Journal is currently edited by Jaymin Lee Editor

More articles in International Economic Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().