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The Role of Foreign and Domestic Investment in Promoting Exports and Imports. A Dynamic Panel Approach

Oana Popovici and Adrian Cantemir Calin

No 16, Working papers from Research Association for Interdisciplinary Studies

Abstract: The goal of this paper is to evaluate weather domestic or foreign investments are involved in the promotion of exports and imports in eight of the newest European Union member states. We apply the dynamic panel data model for identifying the determinants of both exports and imports in the period 1999-2013. Our main result point that there is a complementary relationship between FDI and both exports and imports. The EU membership is significant for the expansion of the trade activity, but is more relevant for the export activity than for the import one.

Keywords: dynamic panel model; export; import; FDI; domestic investment (search for similar items in EconPapers)
JEL-codes: C36 F14 F21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-int
Date: 2017-01
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Published in Conference proceedings Globalization - Economic, Social and Moral Implications, April 2017, pages 163-175

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DOI: 10.5281/zenodo.581782

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