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Inward FDI Stock and Growth in Central and Eastern Europe

  • Lucyna Kornecki

    ()

    (Embry-Riddle Aeronautical University (ERAU), USA)

  • Vedapuri Raghavan

    ()

    (Embry-Riddle Aeronautical University (ERAU), USA)

Registered author(s):

    This article analyses the foreign direct investment (FDI) in Central and Eastern Europe (CEE) during the post communist era and tests the hypothesis that FDI contributes to the economic growth of the CEE countries. It reflects macroeconomic changes in post communist CEE and estimates the impact of the FDI stock on economic growth in the CEE using model based on the production function. This paper finds a positive association between FDI and economic growth in the CEE and a tremendous impact of FDI stock on GDP growth.

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    File URL: http://www.bapress.ca/Journal/Inward%20FDI%20Stock%20and%20Growth%20in%20Central%20and%20Eastern%20Europe.pdf
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    Article provided by Better Advances Press, Canada in its journal Review of Economics & Finance.

    Volume (Year): 1 (2011)
    Issue (Month): (February)
    Pages: 19-30

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    Handle: RePEc:bap:journl:110102
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    1. Valentina HARTARSKA & Henry THOMPSON, 2008. "Foreign Investment and Transition in Central/Eastern Europe along the Phase Curve," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 67-78.
    2. Li, Xiaoying & Liu, Xiaming, 2005. "Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship," World Development, Elsevier, vol. 33(3), pages 393-407, March.
    3. Abdur Chowdhury & George Mavrotas, 2006. "FDI and Growth: What Causes What?," The World Economy, Wiley Blackwell, vol. 29(1), pages 9-19, 01.
    4. Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
    5. Xiaowen Tian & Shuanglin Lin & Vai Io Lo, 2004. "Foreign direct investment and economic performance in transition economies: evidence from China," Post-Communist Economies, Taylor & Francis Journals, vol. 16(4), pages 497-510.
    6. Luiz R. de Mello Jr., 1997. "Foreign Direct Investment in Developing Countries: A Selective Survey," Studies in Economics 9701, School of Economics, University of Kent.
    7. Gao, Ting, 2005. "Foreign direct investment and growth under economic integration," Journal of International Economics, Elsevier, vol. 67(1), pages 157-174, September.
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