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Domestic Investments on the Economic Growth in Bulgaria for the1999-2015 Period

Author

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  • Anika Petkova

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The problem whether foreign direct investments have crowding-in or crowding-out effect is quite arguable because the effects of FDI remain different in each country. The relationship between domestic and foreign investments depends on the stage of economic development. Measurement of the relation between gross fixed capital formation and FDI and also their joint or separate effect on the economic growth rate is achieved through descriptive or either by constructing appropriate econometric models. Often the relation “FDI – domestic investment – economic growth” is carried through transmission mechanism in face of the import of investment goods. Concerning effects of FDI and domestic investments on economic growth it could be argued that in the long-run their joint impact has positive influence on growth.

Suggested Citation

  • Anika Petkova, 2018. "Domestic Investments on the Economic Growth in Bulgaria for the1999-2015 Period," Ikonomiceski i Sotsialni Alternativi, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 136-143, April.
    • Handle: RePEc:nwe:iisabg:y:2018:i:2:p:136-143
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    More about this item

    Keywords

    foreign direct investments; domestic investments; economic growth; transmission mechanism; import of investment goods;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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