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Spatial competition for FDIs in Southeast Europe

Author

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  • Marjan Petreski

    (University American College Skopje; Finance Think; Gdansk University of Technology)

Abstract

This paper investigates the spatial dynamics of foreign direct investment (FDI) in Southeast Europe, focusing on whether FDI inflows in one country complement or compete with those in neighboring economies. Using spatial econometric models and panel data from 2014 to 2023 across seven countries, the analysis reveals strong competitive effects, where FDI in one country often reduces inflows in others. Sectoral specialization and economic fundamentals also shape FDI patterns. The findings corroborate the need for coordinated regional policies to mitigate harmful competition and foster balanced, sustainable investment across the region.

Suggested Citation

  • Marjan Petreski, 2025. "Spatial competition for FDIs in Southeast Europe," Economics Bulletin, AccessEcon, vol. 45(3), pages 1598-1609.
    • Handle: RePEc:ebl:ecbull:eb-25-00301
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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P139.pdf
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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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