FDI And Economic Growth In CEE And MENA Countries: A Tale Of Two Regions

Kherfi, Samer; Soliman, Mohamed

doi:10.19030/iber.v4i12.3649

Cited by 24 publications

(20 citation statements)

References 13 publications

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“…Similarly, Reference [54] shows a unidirectional causality between FDI and GDP growth in all CEE countries, except Hungary. The positive impact of FDI on the CEE region was proved by Reference [55], which compared the effect on EU accession countries and MENA countries. In their findings, FDI inflows stimulate economic growth only in the EU accession countries of the CEE region, while the effect of FDI on growth in MENA and in non-EU accession countries is either non-existent or negative.…”

Section: Literature Reviewmentioning

confidence: 98%

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

2019

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In our paper, we analyse the long-term stability and impact of remittances and development aid on sustainable economic growth in developing countries. We use two data samples from countries that were recipients of both aid and remittances in the corresponding period. First, unbalanced data from the years 1970 to 2017; that is, how countries appear in the data. Second, balanced data, where we selected the largest possible set of countries for which data exists without gaps from the years 1970–2017. This dataset consists of 57 countries for the period from 1991 to 2017. Using linear regression models, we conclude that up until the end of the 1980s, the size of aid as a share of gross domestic product (GDP) was larger than the share of remittances. After that, the situation changed and the shares of both inflows were broadly similar. The inflow of remittances was more stable than the inflow of aid and development aid did not (on the contrary to remittances) contribute positively to sustainable economic growth if we consider the entire period between 1970 and 2017. Our results suggest that a statistically significant relationship between development aid and economic growth (per capita) may be observed only in the period from 1990 to 1999. Economic growth in developing countries is negatively influenced by the uncertainty related to the flows of official development assistance (ODA) and aid in all investigated decades. In the case of the remittance flows, the increased volatility tends to contribute negatively to sustainable economic growth only when the remittance flows represent a relatively higher share of GDP.

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Section: Literature Reviewmentioning

confidence: 98%

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

2019

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“…Few studies, like those of Chakraborty and Basu (2002) for India, found little or no evidence for FDI contributing to economic growth. Actually, a faster economic growth attracts more FDI inflows (Choi, 2004;Carkovic and Levine, 2002, Kherfi and Soliman, 2005, Fidrmuc and Kostagianni, 2015, Cichy and Gradoń, 2016.…”

Section: Introductionmentioning

confidence: 99%

The Relation Between Economic Growth and Foreign Direct Investment During the Economic Crisis in the European Union

Simionescu¹

2016

Zb.rad.Ekon.fak.Rij.

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“…The study carried out in 2005 included the countries of Central and Eastern Europe. The positive impact of FDI on economic growth was identified in countries that are in the process of accession to the EU, while the impact of FDI on economic growth in countries that are not in the process of accession to the EU was not significant or it was negative (Kherfi & Soliman, 2005).…”

Section: Literature Reviewmentioning

confidence: 89%

Foreign Direct Investment and Economic Growth of the Central and Southeast European Countries

Žarković¹,

Gligorić²,

Žarković³

2018

ACE

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Economic theory suggests that free capital flows increase the efficiency of the resource allocation and stimulate economic growth. Foreign direct investment (FDI) is seen as a remedy for all economic problems in countries that do not have a sufficient level of accumulation to start economic growth. According to economic criteria of Copenhagen, countries that are in the process of European integration should have a functioning market economy able to cope with competition and market forces within the European Union. The greatest expectations regarding the development of a competitive economy in the Southeast European (SEE) countries are precisely related to attraction and exploitation of the positive effects of FDI. This paper explores the impact of FDI on economic growth of the Central European (CE) countries and the SEE countries. The experience of the CE countries can be beneficial for the SEE countries following them in the process of European integration. The results show that FDI flows to the SEE region are significantly lower than to the CE region. Panel analysis has shown a statistically significant impact of FDI on economic growth inboth regions. However, in absolute terms the impact of FDI on economic growth inthe SEE region is almost negligible.

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FDI And Economic Growth In CEE And MENA Countries: A Tale Of Two Regions

Cited by 24 publications

References 13 publications

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

The Relation Between Economic Growth and Foreign Direct Investment During the Economic Crisis in the European Union

Foreign Direct Investment and Economic Growth of the Central and Southeast European Countries

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