Effects of Internal and External Factors on Economic Growth in Emerging Economies: Evidence from CEE Countries

Bostan, Ionel; Constantin, T.; Aevoae, George Marian; Robu, Ioan-Bogdan; Mardiros, Daniela; Topliceanu, Ștefan Cătălin

doi:10.1080/00128775.2022.2109489

Cited by 12 publications

(5 citation statements)

References 59 publications

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“…However, recent research has revealed nuanced ndings that challenge this conventional wisdom. For instance, (Bostan et al, 2023); Hassan (2022) and Mamun & Kabir (2023) identi ed an unfavourable association between FDI in ows and economic progress, presenting contrasting results that demand further examination. This underscores the necessity to delve into the unique adaptive capacities of host economies, which signi cantly in uence the repercussions of FDI on economic growth (Joo et al 2022).…”

Section: Review Of Literaturementioning

confidence: 99%

Unleashing economic potential: decoding the FDI-economic growth nexus in G-15 economies amidst unique host country traits

Bajaj,

Bhooshetty

2024

Asia-Pac J Reg Sci

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The study aims to examine the impact of Foreign Direct Investment (FDI) on Economic Growth in G-15 countries while considering the in uence of key host country characteristics, namely Macroeconomic Stability, Financial Development, Human Capital, and Trade Openness. The selection of these variables is supported by both theoretical foundations and empirical studies that highlight their signi cant role in shaping the FDI-growth interconnection. Panel data derived from World Bank Indicators, spanning the period from 1989 to 2021 are analysed using a Feasible Generalized Least Squares method (FGLS). The ndings demonstrated that increased Financial Development, Human Capital, and Trade Openness enhanced the positive effects of FDI on economic growth. However, In ation has a negative effect on growth. Policymakers in these nations should give precedence to developing strong nancial markets, promoting trade liberalization, and investing in human capital to optimize the advantages of FDI. This research addresses a critical gap in the literature as limited empirical work has been conducted on the FDI-growth relationship speci c to the G-15 economies. By employing rigorous panel data methodology and a long-term dataset, this study provides original insights into the interaction between FDI and host country characteristics, contributing to the existing body of knowledge.

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Section: Review Of Literaturementioning

confidence: 99%

Unleashing economic potential: decoding the FDI-economic growth nexus in G-15 economies amidst unique host country traits

Bajaj,

Bhooshetty

2024

Asia-Pac J Reg Sci

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“…The role of foreign direct investment (FDI) on innovation and growth processes has also been demonstrated. FDI directly stimulates economic growth and development, but also, impacts indirectly other aspects of the economic activity through spillovers (Bostan et al, 2023;Apostu et al, 2022). FDI plays a crucial role in facilitating knowledge spillovers, as it promotes technology transfer, human capital development, research collaboration, supplier linkages, and competition, all of which contribute to the diffusion of knowledge and the growth of domestic industries (Marques & Morgan, 2021;Kijek & Kijek, 2019;Bostan et al, 2023;Neuländtner & Scherngell, 2022;Popescu & Mourao, 2016).…”

Section: Regional Innovation and The Role Of Spilloversmentioning

confidence: 99%

Innovation, Coopetition and Spillover Effects in European Regions

Popescu,

Reis Mourao,

Bilan

2023

Journal of Business Economics and Management

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Innovation and investment are critical to economic growth. In this article, we address the complex task of evaluating the capacity of regional innovation to increase investment and generate spillovers in regions of the European Union (EU) from both spatial and temporal perspectives. Using panel data estimation methods and exploring the effects of dynamic spatial autocorrelation, our findings show a positive spatial autocorrelation at the level of EU regions. We also observed spatial competition, both in terms of the distribution of investments and in terms of the diffusion of short-term innovation gains. We argue that, in the short term, EU regions tend to behave as competitors for investment fixing, but in the long run, innovation has the potential to generate spillover effects on neighbouring regions. Furthermore, we find that investment patterns were characterized by a significant temporal autocorrelation, showing that shocks to investment in regions tend to be absorbed in a few periods. This paper attempts to fill existing gaps by using estimation methods for dynamic spatial panel data to identify and explore the effects of regional innovation on investment for the 154 European Union regions, and reports original findings as regards the knowledge spillover across European regions.

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“…This research states that for CEE countries, economic growth is driven mainly by their domestic capital represented by domestic investment and human capital, and FDI does not affect their economic development, but international trade has proven to be a driver of growth. According to Bostan, a country like Bulgaria needs adequate human capital, economic stability and liberalized markets to benefit from long-term capital flows, domestic or foreign (Bostan, et al, 2023).This assessment of the role of investments in GDP growth and its cyclical fluctuations has a generalizing, initial meaning. In research, it is further developed with the help of the actual absolute and relative changes in gross capital formation as a part of GDP by elements of final use.…”

Section: Endogenous and Exogenous Factorsmentioning

confidence: 99%

Modern Economic Growth - Conditions and Factors of Development

2023

JOMSA

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The focus of this paper is on economic growth and the conditions that influence its importance for the regional economy. We define its framework, philosophy and possibilities to influence the development processes of individual territories. Also important are the conditions and growth factors, which are discussed separately. Endogenous and exogenous factors of territorial and spatial development are given a special place in the exposition. The concepts and features of spatial and territorial development are discussed in terms of the functioning of the national economy and the measurement of growth. Special attention is paid to the factors and conditions that, in theoretical order, form the model of regional economic growth. Comparative analysis of processes and phenomena that bring out the specifics and peculiarities of regional economic growth and its significance for regional development is made. In conclusion, relevant conclusions and recommendations are made regarding the importance of regional economic growth for the development of regions and national spaces.

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Effects of Internal and External Factors on Economic Growth in Emerging Economies: Evidence from CEE Countries

Cited by 12 publications

References 59 publications

Unleashing economic potential: decoding the FDI-economic growth nexus in G-15 economies amidst unique host country traits

Unleashing economic potential: decoding the FDI-economic growth nexus in G-15 economies amidst unique host country traits

Innovation, Coopetition and Spillover Effects in European Regions

Modern Economic Growth - Conditions and Factors of Development

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