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Exports and foreign direct investment as factors for economic growth in the EU New Member States

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  • Grigor Stoevsky

Abstract

The relationships between the inward foreign direct investment and the export dynamics, on the one hand, and the economic growth, on the other, are studied. Panel econometric estimates confirm the hypotheses for an export-oriented and/or (domestic and foreign) investment-based economic growth for the EU New Member States in the past fifteen years. A factor contribution analysis reveals the leading role of exports as well as the positive contributions of a similar magnitude of domestic and foreign direct investment for the economic activity dynamics. The implementation of economic policies by the EU New Member States aimed at promoting the export orientation of domestic production and maintaining an attractive business environment for foreign direct investors could be recommended based on these empirical results.

Suggested Citation

  • Grigor Stoevsky, 2015. "Exports and foreign direct investment as factors for economic growth in the EU New Member States," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 92-111,112-.
    • Handle: RePEc:bas:econth:y:2015:i:2:p:92-111,112-129
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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