IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2005-110.html

Foreign Direct Investment in Southeastern Europe: How (and How Much) Can Policies Help?

Author

Listed:
  • Ms. Elina Ribakova
  • Mr. Balázs Horváth
  • Mr. Dimitri G Demekas
  • Mr. Yi Wu

Abstract

Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in Southeastern Europe-a region not comprehensively covered before in econometric studies-but hostcountry policies also matter. Key are policies that affect relative unit labor costs, the corporate tax burden, infrastructure, and the trade regime. This paper develops the concept of potential FDI for each country, and uses its deviation from actual levels to estimate what policies can realistically be expected to achieve in terms of additional FDI. It also finds evidence that above a certain threshold, the importance of some policies for attracting FDI is distinctly different.

Suggested Citation

  • Ms. Elina Ribakova & Mr. Balázs Horváth & Mr. Dimitri G Demekas & Mr. Yi Wu, 2005. "Foreign Direct Investment in Southeastern Europe: How (and How Much) Can Policies Help?," IMF Working Papers 2005/110, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2005/110
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18247
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mr. Alexander Lehmann & Mr. Ashoka Mody, 2004. "International Dividend Repatriations," IMF Working Papers 2004/005, International Monetary Fund.
    2. Mr. Ewe-Ghee Lim, 2001. "Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature," IMF Working Papers 2001/175, International Monetary Fund.
    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. Faria, Andr & Mauro, Paolo, 2009. "Institutions and the external capital structure of countries," Journal of International Money and Finance, Elsevier, vol. 28(3), pages 367-391, April.
    2. Assaf, A. George & Josiassen, Alexander & Agbola, Frank W., 2015. "Attracting international hotels: Locational factors that matter most," Tourism Management, Elsevier, vol. 47(C), pages 329-340.
    3. Tzu-Han YANG & Deng-Shing HUANG, 2011. "Multinational Corporations, FDI and the East Asian Economic Integration," Discussion papers 11071, Research Institute of Economy, Trade and Industry (RIETI).
    4. Tekin, Rıfat Barış, 2012. "Economic growth, exports and foreign direct investment in Least Developed Countries: A panel Granger causality analysis," Economic Modelling, Elsevier, vol. 29(3), pages 868-878.
    5. Ines TROJETTE, 2016. "The Effect Of Foreign Direct Investment On Economic Growth: The Institutional Threshold," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 111-138.
    6. Assad Ullah & Muhammad Anees & Zahid Ali & Muhammad Ayub Khan, 2018. "Economic Freedom and Private Capital Inflows in Selected South Asian Economies: A Dynamic Panel Data Evidence," South Asian Journal of Business and Management Cases, , vol. 7(1), pages 41-52, June.
    7. Polemis, Michael L. & Fafaliou, Irene, 2015. "Electricity regulation and FDIs spillovers in the OECD: A panel data econometric approach," The Journal of Economic Asymmetries, Elsevier, vol. 12(2), pages 110-123.
    8. Jan Babecky & Ales Bulir & Katerina Smidkova, 2012. "Sustainable Real Exchange Rates in the New EU Member States: What Did the Great Recession Change?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 62(3), pages 226-251, July.
    9. Peter N. Kiriri, 2019. "Consumer Perception: Animosity, Ethnocentrism and Willingness to Buy Chinese Products," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 2, ejme_v2_i.
    10. Sergio Castello & Anindya Biswas, 2021. "Foreign Direct Investment, Exports and Long-term Economic Growth in Alabama: A Co-integration Analysis," Arthaniti: Journal of Economic Theory and Practice, , vol. 20(1), pages 86-94, June.
    11. Tuan, Chyau & Ng, Linda Fung-Yee, 2007. "The place of FDI in China's regional economic development: Emergence of the globalized delta economies," Journal of Asian Economics, Elsevier, vol. 18(2), pages 348-364, April.
    12. Lee, Jong-Wha & Shin, Kwanho, 2012. "Welfare implications of international financial integration," Japan and the World Economy, Elsevier, vol. 24(4), pages 235-245.
    13. Merih Uctum & Remzi Uctum, 2005. "Portfolio Flows, Foreign Direct Investment, Crises," Computing in Economics and Finance 2005 224, Society for Computational Economics.
    14. Kateřina Šmídková & Aleš Bulíř, 2005. "Would Fast Sailing Towards the Euro Be Smooth? What Fundamental Real Exchange Rates Tell Us," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(4), pages 291-316.
    15. Marcella Alsan & David E. Bloom & David Canning, 2004. "The Effect of Population Health on Foreign Direct Investment," NBER Working Papers 10596, National Bureau of Economic Research, Inc.
    16. Brancu, Laura & Bibu, Nicolae Aurelian, 2008. "The internationalization Strategies of French Companies in Romania," MPRA Paper 9500, University Library of Munich, Germany.
    17. Jan Knoerich, 2017. "How does outward foreign direct investment contribute to economic development in less advanced home countries?," Oxford Development Studies, Taylor & Francis Journals, vol. 45(4), pages 443-459, October.
    18. Mottaleb, Khondoker Abdul, 2007. "Determinants of Foreign Direct Investment and Its Impact on Economic Growth in Developing Countries," MPRA Paper 9457, University Library of Munich, Germany.
    19. Li, Qiaomin & Scollay, Robert & Maani, Sholeh, 2016. "Effects on China and ASEAN of the ASEAN-China FTA: The FDI perspective," Journal of Asian Economics, Elsevier, vol. 44(C), pages 1-19.
    20. Jansen, W. Jos & Stokman, Ad C.J., 2004. "Foreign direct investment and international business cycle comovement," Working Paper Series 401, European Central Bank.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:imf:imfwpa:2005/110. 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: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.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.