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Foreign Direct Investments and Economic Growth in Central and Eastern Europe: A Panel-Based Analysis

In: Emerging Issues in the Global Economy

Author

Listed:
  • Lucian Belaşcu

    (Lucian Blaga University of Sibiu)

  • Oana Popovici

    (Bucharest University of Economic Studies)

  • Alexandra Horobeţ

    (Bucharest University of Economic Studies)

Abstract

One of the most discussed issues related to foreign direct investments (FDI) refers to the impact they have on the economic and social welfare of a country. Moreover, if these effects are positive, the question is to what extent and by what instruments they can be enhanced by host country governments. In recent decades, the general political opinion on FDI changed, as they are rather understood as generating competitiveness and growth for host countries and less in terms of their negative effects on the economy. Our paper investigates the relationship between FDI flows and economic growth in countries from Central and Eastern Europe that are also EU members using the panel methodology and implementing various panel specifications that shed light on the particularities of this relationship among the five countries. We find that FDI have a positive contribution to economic growth in these economies, together with capital and, to some extent, international trade size, but also that country and period idiosyncrasies matter for a better understanding of economic growth determination.

Suggested Citation

  • Lucian Belaşcu & Oana Popovici & Alexandra Horobeţ, 2018. "Foreign Direct Investments and Economic Growth in Central and Eastern Europe: A Panel-Based Analysis," Springer Proceedings in Business and Economics, in: Silvia Cristina Mărginean & Claudia Ogrean & Ramona Orăștean (ed.), Emerging Issues in the Global Economy, chapter 0, pages 35-46, Springer.
  • Handle: RePEc:spr:prbchp:978-3-319-71876-7_4
    DOI: 10.1007/978-3-319-71876-7_4
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    Cited by:

    1. Valentina Vasile & Mirela Panait & Paolo Piciocchi & Maria Antonella Ferri & Maria Palazzo, 2022. "Performance management and sustainable development: an exploration of non-financial performance of companies with foreign capital in Romania," Italian Journal of Marketing, Springer, vol. 2022(3), pages 371-400, September.
    2. Ștefan Cristian Gherghina & Liliana Nicoleta Simionescu & Oana Simona Hudea, 2019. "Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 11(19), pages 1-33, September.
    3. Eglantina Hysa & Erinda Imeraj & Nerajda Feruni & Mirela Panait & Valentina Vasile, 2022. "COVID-19—A Black Swan for Foreign Direct Investment: Evidence from European Countries," JRFM, MDPI, vol. 15(4), pages 1-21, March.

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