Macroecnomic Impacts of FDI in Transition Economies: A Meta-Study
AbstractIn this paper, we conduct a meta-analysis of the literature that empirically examines the impact of foreign direct investment (FDI) on economic growth in Central and Eastern Europe and the former Soviet Union. We found that existing studies indicate a growth-enhancing effect of FDI in the region as a whole. The results of our meta-regression analysis suggest that the effect size and statistical significance of the reported estimates strongly depend on study conditions. In particular, the estimation period, data type, estimator, and type of FDI variable are important factors that explain the heterogeneity in the empirical results. The degree of freedom and the research quality greatly affect estimates of the FDI variable as well. We also found that the relevant studies fail to present genuine evidence of a non-zero FDI effect due to the presence of publication selection bias and insufficient numbers of empirical evidence. More research is necessary to identify the true effect.
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Bibliographic InfoPaper provided by Russian Research Center, Institute of Economic Research, Hitotsubashi University in its series RRC Working Paper Series with number 39.
Length: 21,  p.
Date of creation: Aug 2013
Date of revision:
economic transition; macroeconomic impacts of FDI; meta-analysis; publication selection bias; Central and Eastern Europe; former Soviet Union;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
- P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-CIS-2013-08-31 (Confederation of Independent States)
- NEP-CWA-2013-08-31 (Central & Western Asia)
- NEP-EEC-2013-08-31 (European Economics)
- NEP-TRA-2013-08-31 (Transition Economics)
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