IDEAS home Printed from https://ideas.repec.org/p/ftm/policy/2025-07-56.html
   My bibliography  Save this paper

Spatial Competition for FDIs in Southeast Europe

Author

Listed:
  • Marjan Petreski

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Marjan Petreski, 2025. "Spatial Competition for FDIs in Southeast Europe," Finance Think Policy Studies 2025-07/56, Finance Think - Economic Research and Policy Institute.
    • Handle: RePEc:ftm:policy:2025-07/56
    as

    Download full text from publisher

    File URL: https://www.financethink.mk/wp-content/uploads/2025/07/Studija-EN-56.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Olgica Glavaški & Emilija Beker Pucar & Marina Beljić & Stefan Stojkov, 2022. "Coordination vs. Competitiveness of Effective Average Tax Rates in Relation to FDI: The Case of Emerging EU Economies," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    2. Riccardo Crescenzi & Roberto Ganau, 2025. "Inward FDI and regional performance in Europe after the Great Recession," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 18(1), pages 167-192.
    3. Tamás Krisztin & Philipp Piribauer, 2021. "Modelling European regional FDI flows using a Bayesian spatial Poisson interaction model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 593-616, December.
    4. Gheorghe H. Popescu, 2014. "FDI and Economic Growth in Central and Eastern Europe," Sustainability, MDPI, vol. 6(11), pages 1-15, November.
    5. Eldin Mehic & Sabina Silajdzic & Vesna Babic-Hodovic, 2013. "The Impact of FDI on Economic Growth: Some Evidence from Southeast Europe," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(S1), pages 5-20, January.
    6. Laura CASI & Laura RESMINI, 2010. "Evidence on the determinants of foreign direct investment: the case of EU regions," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 93-118, December.
    7. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215, March.
    8. repec:lic:licosd:8399 is not listed on IDEAS
    9. Laura Resmini, 2000. "The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 665-689, November.
    10. Marjan Petreski, 2020. "Winners or losers? Workers in transition economies under globalisation," Post-Communist Economies, Taylor & Francis Journals, vol. 32(4), pages 468-494, May.
    11. Avik Chakrabarti, 2001. "The Determinants of Foreign Direct Investments: Sensitivity Analyses of Cross‐Country Regressions," Kyklos, Wiley Blackwell, vol. 54(1), pages 89-114, February.
    12. Hong Hiep Hoang & Cong Minh Huynh & Nguyen Minh Huy Duong & Ngoc Hoe Chau, 2022. "Determinants of foreign direct investment in Southern Central Coast of Vietnam: a spatial econometric analysis," Economic Change and Restructuring, Springer, vol. 55(1), pages 285-310, February.
    13. Jože Mencinger, 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?," Kyklos, Wiley Blackwell, vol. 56(4), pages 491-508, November.
    14. Bevan, Alan A. & Estrin, Saul, 2004. "The determinants of foreign direct investment into European transition economies," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 775-787, December.
    Full references (including those not matched with items on IDEAS)

    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. Andrzej Cieślik, 2020. "What attracts multinational enterprises from the new EU member states to Poland?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 253-269, June.
    2. Ramona Jimborean & Anna Kelber, 2017. "Foreign Direct Investment Drivers and Growth in Central and Eastern Europe in the Aftermath of the 2007 Global Financial Crisis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(1), pages 23-54, March.
    3. 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.
    4. Andrea Gauselmann & Philipp Marek, 2011. "Regional Determinants of MNE's Location Choice in Transition Economies," WIFO Working Papers 412, WIFO.
    5. Contractor, Farok J. & Dangol, Ramesh & Nuruzzaman, N. & Raghunath, S., 2020. "How do country regulations and business environment impact foreign direct investment (FDI) inflows?," International Business Review, Elsevier, vol. 29(2).
    6. Andreia Olival, 2012. "The influence of Doing Business’ institutional variables in Foreign Direct Investment," GEE Papers 0048, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Dec 2012.
    7. Mohammad Shaiful Islam & Ahmed Beloucif, 2024. "Determinants of Foreign Direct Investment: A Systematic Review of the Empirical Studies," Foreign Trade Review, , vol. 59(2), pages 309-337, May.
    8. Gauselmann, Andrea & Marek, Philipp & Angenendt, Jan Philipp, 2011. "MNE’s Regional Location Choice - A Comparative Perspective on East Germany, the Czech Republic and Poland," IWH Discussion Papers 8/2011, Halle Institute for Economic Research (IWH).
    9. Nadja Walch & Julia Wörz, 2012. "The Impact of Country Risk Ratings and of the Status of EU Integration on FDI Inflows in CESEE Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 8-26.
    10. Liu, Haiyun & Islam, Mollah Aminul & Khan, Muhammad Asif & Hossain, Md Ismail & Pervaiz, Khansa, 2020. "Does financial deepening attract foreign direct investment? Fresh evidence from panel threshold analysis," Research in International Business and Finance, Elsevier, vol. 53(C).
    11. Elisabeth Christen & Martin Falk, 2020. "Auswirkungen der EU-Mitgliedschaft auf ausländische Greenfield-Direktinvestitionen," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/20, pages 110-121.
    12. Thomas Neise & Franziska Sohns & Moritz Breul & Javier Revilla Diez, 2022. "The effect of natural disasters on FDI attraction: a sector-based analysis over time and space," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 110(2), pages 999-1023, January.
    13. Lenuta CARP (CEKA), 2014. "Determinants Of Foreign Direct Investments In Romania," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 197-202, November.
    14. Schäffler, Johannes & Hecht, Veronika & Moritz, Michael, 2014. "Regional determinants of German FDI in the Czech Republic : evidence from a gravity model approach," IAB-Discussion Paper 201403, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Yanfeng Liu & Miao Su & Jinjing Zhao & Sally Martin & Kum Fai Yuen & Choong-Bae Lee, 2023. "The determinants of China’s outward foreign direct investment: a vector error correction model analysis of coastal and landlocked countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 29-56, February.
    16. Bruno Merlevede & Koen Schoors, 2009. "Privatisation and foreign direct investment in 10 transition countries," Post-Communist Economies, Taylor & Francis Journals, vol. 21(2), pages 143-156.
    17. Cohle, Zachary & Ortega, Alberto, 2022. "Life of the party: The polarizing effect of foreign direct investment," European Journal of Political Economy, Elsevier, vol. 72(C).
    18. Balaban, Suzana & Živkov, Dejan & Milenković, Ivan, 2019. "Impact of an unexplained component of real exchange rate volatility on FDI: Evidence from transition countries," Economic Systems, Elsevier, vol. 43(3).
    19. Shah, Mumtaz Hussain & Khan, Faisal, 2019. "Telecommunication Infrastructure Development and FDI into Asian Developing Nations," MPRA Paper 107255, University Library of Munich, Germany.
    20. Lefilleur, Julien & Maurel, Mathilde, 2010. "Inter- and intra-industry linkages as a determinant of FDI in Central and Eastern Europe," Economic Systems, Elsevier, vol. 34(3), pages 309-330, September.

    More about this item

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ftm:policy:2025-07/56. 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: Marjan Petreski (email available below). General contact details of provider: https://edirc.repec.org/data/finthmk.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.