IDEAS home Printed from https://ideas.repec.org/a/cbk/journl/v1y2012i2p55-73.html
   My bibliography  Save this article

The economic impacts of the foreign direct investments: panel estimation by sectors on the case of Macedonian economy

Author

Listed:
  • Aneta Krstevska

    (Chief Economist at the National Bank of the Republic of Macedonia)

  • Magdalena Petrovska

    (Analyst at the Research Department of the National Bank of the Republic of Macedonia)

Abstract

This paper elaborates economic impacts of foreign direct investments (FDI) on the case of Macedonian economy. Most developing countries consider FDI a vital source for their development. Anyway, it is quite difficult to measure the economic effects of FDI on the host country, having in mind their numerous direct and indirect effects. Besides the amount of FDI inflows, economic benefit will also depend on their structure. Based on a panel regression technique, FDI impact on GDP, export and employment on the case of Macedonian economy have been estimated, taking into account their structural dimension. The main conclusion of the analysis is that FDI inflows were an important factor for GDP growth and export performances of the Macedonian economy. On the other hand, the FDI impact over employment is negative mainly due to the low level of green field investments and non attractiveness of the labour intensive industry for the foreign investors. These findings regarding the type and sector distribution of FDI inflows are very important for the policy makers and imply a need for a strategic approach in this field.

Suggested Citation

  • Aneta Krstevska & Magdalena Petrovska, 2012. "The economic impacts of the foreign direct investments: panel estimation by sectors on the case of Macedonian economy," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 1(2), pages 55-73.
    • Handle: RePEc:cbk:journl:v:1:y:2012:i:2:p:55-73
    as

    Download full text from publisher

    File URL: http://www.cbcg.me/repec/cbk/journl/vol1no2-3.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anton Jevcak & Ralph Setzer & Massimo Suardi, 2010. "Determinants of Capital Flows to the New EU Member States Before and During the Financial Crisis," European Economy - Economic Papers 2008 - 2015 425, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Goran Vuksic, 2005. "Impact of foreign direct investment on Croatian manufacturing exports," Financial Theory and Practice, Institute of Public Finance, vol. 29(2), pages 131-158.
    3. Marco Neuhaus, 2006. "The Impact of FDI on Economic Growth," Contributions to Economics, Springer, number 978-3-7908-1735-5, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viral Pandya & Sommala Sisombat, 2017. "Impacts of Foreign Direct Investment on Economic Growth: Empirical Evidence from Australian Economy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(5), pages 121-131, May.
    2. Mite Miteski & Dijana Janevska Stefanova, 2017. "The Impact of Sectorial FDI on Economic Growth in Central, Eastern and Southeastern Europe," Working Papers 2017-01, National Bank of the Republic of North Macedonia.
    3. Ngo Thai Phuong & Bahaudin G. Mujtaba & Greg Fisher, 2014. "The Influence of Communism on Ethical Decision Making," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 4(1), pages 1-8, February.
    4. Hussain Ali Bekhet & Raed Walid Al-Smadi, 2016. "The dynamic causality between FDI inflow and its determinants in Jordan," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(1), pages 26-47.
    5. International Monetary Fund, 2016. "Former Yugoslav Republic of Macedonia: Selected Issues," IMF Staff Country Reports 2016/357, International Monetary Fund.
    6. Dimitar NIKOLOSKI, 2017. "The impact of Foreign Direct Investments on employment: the case of the Macedonian manufacturing sector," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 147-165, December.
    7. Cruz Mejía, Jose Vidal & Cruz-Rodríguez, Alexis, 2020. "Impacto de la inversión extranjera directa en el crecimiento económico, las exportaciones y el empleo de República Dominicana [Impact of foreign direct investment on economic growth, exports and em," MPRA Paper 100990, University Library of Munich, Germany.
    8. Bekhet, Hussain Ali & Al-Smadi, Raed Walid, 2015. "Determinants of Jordanian foreign direct investment inflows: Bounds testing approach," Economic Modelling, Elsevier, vol. 46(C), pages 27-35.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Viral Pandya & Sommala Sisombat, 2017. "Impacts of Foreign Direct Investment on Economic Growth: Empirical Evidence from Australian Economy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(5), pages 121-131, May.
    2. Maja Bukovšak & Gorana Lukinić Čardić & Nina Pavić, 2020. "Structure of capital flows and exchange rate: the case of Croatia," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(1), pages 113-146, February.
    3. Maja Bukovšak & Gorana Lukinić Čardić & Nina Ranilović, 2017. "Structure of Capital Flows and Exchange Rate: The Case of Croatia," Working Papers 52, The Croatian National Bank, Croatia.
    4. Dragoljub Stojanov, 2014. "Kapitalizam III i kiberneticki neokolonijalizam," Ekonomija Economics, Rifin d.o.o., vol. 21(1), pages 135-160.
    5. Pollitt, Michael, 2009. "Evaluating the evidence on electricity reform: Lessons for the South East Europe (SEE) market," Utilities Policy, Elsevier, vol. 17(1), pages 13-23, March.
    6. Jolita Vveinhardt & Palmira Papsiene, 2013. "Assessment Of Human Resources In Order To Optimize The State Of Organization’S Climate: National Experience In International Context," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 11(3), pages 5-18.
    7. Faruk G rsoy & H seyin Kalyoncu, 2012. "Foreign Direct Investment and Growth Relationship in Georgia," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 267-271.
    8. Pop Silaghi, Monica Ioana & Alexa, Diana & Jude, Cristina & Litan, Cristian, 2014. "Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern European Countries? A dynamic panel estimation," Economic Modelling, Elsevier, vol. 36(C), pages 108-119.
    9. Elvira Vieira & Isabel Neira & Em�lia Vázquez, 2011. "Productivity And Innovation Economy: Comparative Analysis Of European Nuts Ii, 1995--2004," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1269-1286, March.
    10. Tibor Lalinsky & Jaanika Meriküll, 2021. "The Effect of the Single Currency on Exports: Comparative Firm-Level Evidence," International Journal of Central Banking, International Journal of Central Banking, vol. 17(3), pages 203-239, September.
    11. Lubomir Cech, 2013. "Súčasný Stav A Perspektívy Rusko-Afganských Vzťahov," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 11(3), pages 106-123.
    12. Jarko Fidrmuc & Reiner Martin, 2011. "Capital Inflows, Exports and Growth in the CESEE Region," Chapters, in: Ewald Nowotny & Peter Mooslechner & Doris Ritzberger-Grünwald (ed.), Post-Crisis Growth and Integration in Europe, chapter 21, Edward Elgar Publishing.
    13. Cazzavillan, Guido & Olszewski, Krzysztof, 2012. "Interaction between foreign financial services and foreign direct investment in Transition Economies: An empirical analysis with focus on the manufacturing sector," Research in Economics, Elsevier, vol. 66(4), pages 305-319.
    14. Carmen Elena Dorobat, 2015. "A brief history of international trade thought: From pre-doctrinal contributions to the 21st century heterodox international economics," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 8(2), May.
    15. Stefan Huemer & Beatrice Scheubel & Florian Walch, 2013. "Measuring Institutional Competitiveness in Europe," CESifo Economic Studies, CESifo Group, vol. 59(3), pages 576-608, September.
    16. Stepan Jurajda & Juraj Stancik, 2012. "Foreign Ownership and Corporate Performance: The Czech Republic at EU Entry," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 62(4), pages 306-324, August.
    17. Tomislav Globan, 2015. "Financial integration, push factors and volatility of capital flows: evidence from EU new member states," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(3), pages 643-672, August.
    18. Simona Chuguryan & Vahram Chuguryan, 2013. "Genocída Arménov A Postoj Vybraných Medzinárodných Aktérov (2. Časť)," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 11(3), pages 58-80.
    19. Balli, Faruk & Basher, Syed Abul & Balli, Hatice Ozer, 2013. "International income risk-sharing and the global financial crisis of 2008–2009," Journal of Banking & Finance, Elsevier, vol. 37(7), pages 2303-2313.
    20. Gál, Zoltán, 2019. "Az FDI szerepe a gazdasági növekedés és a beruházások területi differenciálódásában Magyarországon [The foreign direct investment role in Hungarys economic growth and territorial differentiation of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 653-686.

    More about this item

    Keywords

    foreign direct investments; tradable sector; non tradable sector; economic growth; export; employment;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbk:journl:v:1:y:2012:i:2:p:55-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cbmgvme.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.