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Trade, Foreign Direct Investment, and Growth: Evidence from Transition Economies

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Author Info
Hiranya K Nath () (Department of Economics and International Business, Sam Houston State University, Huntsville, TX 77341-2118, USA.)

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Abstract

Using a fixed effects panel data approach, this paper empirically examines the effects of trade and foreign direct investment (FDI) on growth of per capita real GDP in 13 transition economies of Central and Eastern Europe, and the Baltic region from 1991 to 2005. A significant positive effect of trade on growth is a robust result for transition economies of this region. In addition, domestic investment appears to be an important determinant of growth. In general, FDI does not have any significant impact on growth in these transition economies. However, when we control for the effects of domestic investment and trade on FDI, it appears to be a significant determinant of growth for the period after 1995. Comparative Economic Studies (2009) 51, 20–50. doi:10.1057/ces.2008.20

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Publisher Info
Article provided by Palgrave Macmillan Journals in its journal Comparative Economic Studies.

Volume (Year): 51 (2009)
Issue (Month): 1 (March)
Pages: 20-50
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Handle: RePEc:pal:compes:v:51:y:2009:i:1:p:20-50

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This page was last updated on 2009-11-11.

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