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The Impact of Sectorial FDI on Economic Growth in Central, Eastern and Southeastern Europe

Author

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  • Mite Miteski

    () (National Bank of the Republic of Macedonia)

  • Dijana Janevska Stefanova

    () (National Bank of the Republic of Macedonia)

Abstract

This paper investigates the effects of foreign direct investment inflows in the industrial, construction and services sectors on economic growth in a panel of sixteen Central, Eastern and Southeastern European CESEE countries using data of different time spans within the 1998-2013 period. The empirical results show that total FDI contributes positively to the growth in the analyzed countries. With regards to our main focus, the analysis of the decomposition of FDI finds that FDI in the industrial and services sectors has a positive and significant effect on economic growth, whereas FDI in the construction sector does not exert statistically significant growth-promoting effects.

Suggested Citation

  • Mite Miteski & Dijana Janevska Stefanova, 2017. "The Impact of Sectorial FDI on Economic Growth in Central, Eastern and Southeastern Europe," Working Papers 2017-01, National Bank of the Republic of North Macedonia.
  • Handle: RePEc:mae:wpaper:2017-01
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    File URL: http://www.nbrm.mk/content/Working%20papers/Impact_Sectorial_FDI_Economic_Growth_CEandS_Europe.pdf
    File Function: First version, 2016
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    References listed on IDEAS

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    Cited by:

    1. 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, Open Access Journal, vol. 11(19), pages 1-33, September.

    More about this item

    Keywords

    Foreign direct investment; economic growth; industrial sector; construction sector; services sector:;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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