FDI and Growth in Central and Southern Eastern Europe
AbstractThis paper examines the role of FDI in promoting growth in 25 Central and Southern Eastern Europe (CSEE) using a dynamic panel approach that includes lags of involved variables to mitigate the problem of serial correlation. It adopts also a ‘general-to-specific' approach to deal with the problem of the omitted variable and uses different estimation methods to control for heterogeneity and autocorrelation. The main finding is that FDI has a positive and significant impact on economic growth in accordance with theory.
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Bibliographic InfoPaper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 12-2009.
Length: 30 pages
Date of creation: Jul 2009
Date of revision:
Foreign Direct Investment; economic growth; transition economies.;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-FDG-2009-09-26 (Financial Development & Growth)
- NEP-TRA-2009-09-26 (Transition Economics)
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