Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis

Kai Carstensen and Farid Toubal

No 1143, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper uses dynamic panel data methods to examine the determinants of Foreign Direct Investment (FDI) into Central and Eastern European Countries (CEECs). Our empirical model shows that the traditional determinants, such as market potential, low relative unit labor costs, a skilled workforce and relative endowments have significant and plausible effects. In addition, transition-specific factors such as the level and method of privatisation, and the country risk, play an important role in determining the flows of FDI into the CEECs and help explain the different attractiveness for FDI of the individual countries.

Keywords: Transition economies; FDI; Panel estimation (search for similar items in EconPapers)
JEL-codes: F21 F23 P33 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (26)

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Related works:
Journal Article: Foreign direct investment in Central and Eastern European countries: a dynamic panel analysis (2004)
Working Paper: Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis (2004)
Working Paper: Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis (2004)
Working Paper: Foreign direct investment in Central and Eastern European countries: A dynamic panel analysis (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1143

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