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Foreign Direct Investment Attraction in Central, Eastern and South- Eastern Europe: the Importance of Public Policy

Author

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  • Svilena Mihaylova

    (University of Economics Ð Varna, Bulgaria)

Abstract

The paper enhances the discussion about the determinants of foreign direct investment (FDI) in Central, Eastern and South-Eastern European countries and the ability of public policy to influence their FDI attractiveness. Based on data for 15 countries in 2013 and 2017, we build a composite index, which allows us to rank countries in terms of their overall FDI attractiveness, as well as its most important dimensions, such as institutional framework, infrastructure endowment, labour force quality and cost competitiveness. In addition to allowing comparison between economies across these dimensions, the results reveal areas in which some countries need improvement so that they can attract more FDI.

Suggested Citation

  • Svilena Mihaylova, 2019. "Foreign Direct Investment Attraction in Central, Eastern and South- Eastern Europe: the Importance of Public Policy," Bulgarian Economic Papers bep-2019-07, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Nov 2019.
  • Handle: RePEc:sko:wpaper:bep-2019-07
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    File URL: https://www.uni-sofia.bg/index.php/eng/content/download/223309/1494765/file/BEP-2019-07.pdf
    File Function: First version, 2019
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    More about this item

    Keywords

    foreign direct investment; FDI; public policy; economic comparison; composite index.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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