CAPITAL FORMATION IN THE ECONOMIES OF CENTRAL AND EASTERN EUROPE THROUGH FOREIGN DIRECT INVESTMENT AND ITS MAIN DETERMINANTS: TWENTY YEARS' EXPERIENCE

Apply

CAPITAL FORMATION IN THE ECONOMIES OF CENTRAL AND EASTERN EUROPE THROUGH FOREIGN DIRECT INVESTMENT AND ITS MAIN DETERMINANTS: TWENTY YEARS' EXPERIENCE

Journal Title: Przedsiębiorstwo & Finanse - Year 2014, Vol 7, Issue 4

Abstract

Defined macroeconomic and institutional factors attracting significant flows of foreign direct investment in the economies of Central and Eastern Europe and performed an econometric estimation of their influence for 15 countries during 1991 - 2010 based on panel regression with random effects. Foreign direct investment in CEE countries is horizontal in nature and focus on the scale of the domestic market. Statistically significant also are next variables: economic growth, reducing the budget deficit, reducing the difference between deposit and loan rates. Some differentiation is observed between the Member States of the European Union and European post-Soviet countries The analysis of the impact of domestic and foreign investment on economic growth in CEE countries , certainly reduce the effectiveness of FDI. Welfare and development of the internal market - the main factor in FDI inflows to the post-socialist CEE countries; foreign direct investment in post-Soviet countries is mostly speculative and does not contribute to lower interest rates, to improve fiscal balance Keywords: capital formation, foreign direct investment, economic growth, panel regression, countries of Central and Eastern Europe.

Authors and Affiliations

Yuriy Bilenko

Keywords

EP ID EP165279
DOI -
Views 62
Downloads 0