 Determinants of inward FDI in Ukraine: Does political stability matter?Andrzej Cieślik and Oleg Gurshev International Journal of Management and Economics, 2020, vol. 56, issue 3, 243-254 Abstract: The main goal of this article is to study the determinants of foreign direct investment (FDI) in Ukraine from 2013 to 2017 that includes the years of armed conflict. We adopt the Knowledge-Capital model as our analytical framework and extend it to include the effects that account for political stability and political regime. The research hypotheses obtained from this framework are verified using the Pseudo-Poisson Maximum Likelihood estimation technique and the bilateral panel data on direct investment stocks from 140 partner countries. Our empirical findings show that access to Ukraine's cheap labor force is the primary reason for inward FDI. Moreover, we find no direct relationship between the political events in Ukraine and the investment stock dynamics as the estimated parameters on the indices of democracy, autocracy, polity, and political stability show no statistical significance. Keywords: foreign direct investment; political stability; Pseudo-Poisson maximum likelihood; Ukraine (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vrs:ijomae:v:56:y:2020:i:3:p:243-254:n:7 Access Statistics for this article International Journal of Management and Economics is currently edited by Mariusz Próchniak More articles in International Journal of Management and Economics from Warsaw School of Economics, Collegium of World Economy |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.