Determinants of foreign direct investment inflows: A case of the Visegrad countries

Hintošová, Aneta Bobenič; Bruothová, Michaela; Kubíková, Zuzana; Ručinský, Rastislav

doi:10.14254/2071-8330.2018/11-2/15

Cited by 33 publications

(18 citation statements)

References 23 publications

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“…They found trade and FDI had a bidirectional Granger causality as the results of the causality for seven countries in the SAARC region. Hintošová et al (2018) examined the determinants of foreign direct investment inflows into Visegrad countries namely, Poland, Hungary, Czech Republic, and Slovak Republic, from 1989 to 2016 using OLS and Fixed effect model. Market size, labor cost, trade openness, economic stability, innovation, and taxation variables were considered as the independent variables of the model.…”

Section: Literature Reviewmentioning

confidence: 99%

Causal Links between Trade Openness and Foreign Direct Investment in Romania

Mudiyanselage¹,

Epuran²,

Tescașiu³

2021

JRFM

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In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

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Section: Literature Reviewmentioning

confidence: 99%

Causal Links between Trade Openness and Foreign Direct Investment in Romania

Mudiyanselage¹,

Epuran²,

Tescașiu³

2021

JRFM

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“…These firm-specific assets could be superior production techniques (Nagy et al 2018), knowhow or management strategy, they have at least some of the characteristics of a public good and enable the firm to locate profitably abroad (Caves, 1996). At the same time, FDI contribute to creation of new jobs and training of the employed people, and this contributes to increasing productivity (Bobenič Hintošová et al, 2018). Furthermore, FDI represents a method for financing the deficit of the country's current account, which is very crucial in cases when the deficit is unsustainable.…”

Section: Introductionmentioning

confidence: 99%

Foreign direct investment in the Republic of Serbia: Correlation between foreign direct investments and the selected economic variables

Vasa¹,

Angeloska²

2020

Journal of International Studies

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Foreign Direct Investment (FDI) in the theory of economic thought is considered to be an important factor for country's growth and development. By encouraging multinational corporations to invest, host countries hope to generate spillovers because FDI transfer intangible assets to the affiliate, which may then diffuse to local firms. Serbia is integrating into European economic space with a significant delay. Despite a thunderous decade of wars and ethnic tussle, late transition and financial crisis, Serbia has experienced significant FDI inflows in the last decade, mainly because of the improved policies attracting foreign investors. The aim of this paper is to analyze the correlation and significant degree to which the examined variables are associated with each other. The economic variables cover 12 years (2007-2018). The main focus is on those variables that are considerably influencing changes and impact on FDI in Serbia. The study uses SPSS to analyse the correlations among the selected eight socioeconomic variables. The examined variables are: industrial growth, unemployment rate, employment from age 15 to 65, foreign trade balance, FDI inflows, FDI outflows, GDP growth, and the share of value added products in the exports. For this analysis the data from the Statistical Office or the Republic of Serbia, the National Bank of Serbia and the Ministry of Finance has been used. There is a very weak correlation between FDI inflows and the unemployment rate. Also, our results suggest there is a very weak correlation between FDI inflows and increased GDP growth. The GDP growth has strong correlations with the industry growth, FDI inflow and FDI outflow.

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“…The formation of the country's favorable investment environment, being under the influence of external and internal factors, is considered to be the basis for investment attractiveness of any country (Cheba & Szopik-Depczyńska, 2017). One of the biggest destructive factors is the shadow economy (Al-Sadig, 200;Blajer-Gołębiewska & Kos, 2016;Bobenič Hintošová et al, 2018;Kostyuchenko et al, 2018;Leonov et al, 2014;Vasilyeva, 2013Vasilyeva, , 2016Vasilyeva, , 2018.…”

Section: Introductionmentioning

confidence: 99%

Shadow Economy and its Impact on Demand at the Investment Market of the Country

Bilan¹,

Vasilyeva²,

Lyeonov³

et al. 2019

EBER

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The objective of the research is to study the link between drivers of the shadow economy and the demand level on the investment market. Research Design & Methods: Based on the Shapiro-Wilk test, the normality of capital investment distribution and the shadow economy level of the European Union countries and Ukraine are evaluated. Spearman and Shapiro-Wilk tests are used to identify the most relevant indicators of impact. Findings: The analysis of the changing dynamics regarding the capital investment volume and the shadow economy level in Ukraine and the EU countries during 2010-2016 shows that there is an inverse link between them-the growth of the shadow economy has a negative impact on the capital investment volume in the country. Implications & Recommendations: This research proves significant influence of the shadow economy on the demand level on the investment market and underlines the necessity to review the current state policy to stimulate the demand on the investment market from the viewpoint of the most relevant shadow drivers. Contribution & Value Added: The scientific contribution of the article is that existing research on the impact of shadow economy on the economic development of countries remains fragmented, as well as studies assessing its effect on a country's investment attractiveness. The constructed econometric model may provide some insight into better understanding of the most influential factors affecting a country's investment attractiveness and the immediate response to it. Article type: research article

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Determinants of foreign direct investment inflows: A case of the Visegrad countries

Cited by 33 publications

References 23 publications

Causal Links between Trade Openness and Foreign Direct Investment in Romania

Causal Links between Trade Openness and Foreign Direct Investment in Romania

Foreign direct investment in the Republic of Serbia: Correlation between foreign direct investments and the selected economic variables

Shadow Economy and its Impact on Demand at the Investment Market of the Country

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