Foreign Direct Investment in Southeastern Europe: How (And How Much) Can Policies Help?

Ribakova, Elina; Horváth, Balázs; Demekas, Dimitri G.; Wu, Yi

doi:10.5089/9781451861297.001

Cited by 24 publications

(9 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Various studies [8] indicate that the flow of Foreign Direct Investment (FDI) is not at a satisfactory level in the Western Balkan countries. Despite the low level of FDI flow in these transitional economies compared to developing and developed countries, projections in the World Investment Report [9] suggest a growing trend of FDI, particularly in transitional countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Berisha,

Sopi

2023

IJSDP

View full text Add to dashboard Cite

The insurance industry is a solid cornerstone of the financial system, and by fostering an environment more favorable to investment, it significantly boosts economic growth. This is especially true for the Western Balkan countries, which are currently growing and joining the European Union. Developing countries can benefit from an additional avenue: the internationalization of insurance businesses through the reinsurance process. The aim of this research is to assess the potential impact of Foreign Direct Investment (FDI) on the insurance industry in the region. The research was carried out in six countries: Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Kosovo, and Serbia. Data from these countries were collected between 2004 and 2021, allowing for an analysis using panel data econometric models, namely the Fixed Effects and Random-Effects models (GLS). The findings of the economic analysis for the three independent variables indicate that FDI inflow positively affects Gross Written Premium (GWP), Insurance Assets (InsAsset), and Penetration Rate (PenetRate) at the α=0.05 significance level. Additionally, the models have demonstrated that the three variables have variations between the countries regarding the impact of FDI inflows using the Lagrange Multiplier (LM) Method -Breusch-Pagan test, at a confidence level of α=0.05. Since the econometric models for the three cases are based on the Random-Effects model (GLS Method), random effects are to blame for the variations in FDI influence between countries. The results have consequences for the insurance industry as well as regional policymakers, especially in Kosovo, who are deciding what measures to take to promote foreign direct investment.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Berisha,

Sopi

2023

IJSDP

View full text Add to dashboard Cite

show abstract

“…Teorija investicijske razvojne putanje razlikuje pet faza razvoja kroz koje prolaze zemlje, a te se faze razvoja mogu povezati sa sklonosti zemlje prema privlačenju inozemnih ulaganja ili pak prema investiranju u druge zemlje. S obzirom na stupanj razvoja zemalja u regiji te tokove kapitala koji pokazuju da su zemlje regije neto uvoznici kapitala, možemo ih svrstati u drugu fazu investicijske razvojne putanje koja pokazuje da priljevi inozemnih izravnih ulaganja počinju rasti, ali su odljevi još uvijek relativno niski (Andreff & Andreff, 2017;Dauti, 2015;Franc, 2013).…”

Section: Izvor: Wiiw Database On Foreign Direct Investment (2019)unclassified

Inozemna Izravna Ulaganja U Zemlje Jugoistočne Europe: Ulažu Li Međusobno I Do Koje Mjere Zemlje Regije?

Broz¹

2021

Ekonomska misao i praksa

View full text Add to dashboard Cite

Cilj ovog istraživanja je utvrditi koliko međusobno ulažu zemlje jugoistočne Europe. Naime, postojeća istraživanja nisu usmjerena na analizu otkuda potječu inozemna izravna ulaganja u zemljama jugoistočne Europe - iz drugih zemalja jugoistočne Europe ili iz ostalih zemalja? Zbog toga je u ovom radu fokus stavljen na zemlje jugoistočne Europe kako bi se istražila struktura inozemnih izravnih ulaganja, kao i njihova međusobna povezanost u pogledu inozemnih izravnih ulaganja. Osim toga, cilj rada je konstruirati indeks inozemnih izravnih ulaganja kako bi ustanovili kako se njihova suradnja u ovom području kretala kroz vrijeme. Rezultati pokazuju da inozemna izravna ulaganja u zemlje regije većinom dolaze iz članica EU, dok su međuregionalna izravna ulaganja još uvijek relativno slabo zastupljena. Ipak, indeks inozemnih izravnih ulaganja temeljen na stanju inozemnih izravnih ulaganja ukazuje na kontinuirano povećanje regionalne suradnje. Suradnja između zemalja jugoistočne Europe, iako nominalno niska, ostvaruje značajno više stope rasta od suradnje ove regije s ostatkom svijeta, što ukazuje na interes regije za produbljivanjem zajedničke suradnje.

show abstract

“…37 The actual FDI in most western Balkan countries is lower than potential and gravity factors, policies relating to relative unit labour costs, corporate tax rate, infrastructure and the trade region all influence the flow of FDI. 38 In addition to these exogenous factors highlighted by Demekas et al 2005, other important factors include policy framework and institutional environment. 39 As argued by neo-liberal economists, the western Balkan economies have failed to deliver adequate levels of privatization and institutional reform to create an attractive investment environment for big capital.…”

Section: Economic and Political Transition In The Western Balkans (19mentioning

confidence: 99%

Neo-liberal Globalization and Income Inequality: Panel Data Evidence from OECD and Western Balkan Countries

Roy-Mukherjee

Udeogu

2020

Journal of Balkan and Near Eastern Studies

View full text Add to dashboard Cite

Over the last few decades, neo-liberal globalization-marked especially by the liberalization of finance, extended processes of commodification/privatization, free trade and free flow of capital-has coincided with rising income inequality and an ostensible decline in global poverty levels, the latter being largely attributed to China's and India's rapid economic development since the 1980s. Using a three-year-averaged non-overlapping data from 1991 to 2017 covering 39 OECD and western Balkan countries and applying the efficient Feasible Generalized Least Square (FGLS) estimation method, this article examines the effect of institutional 'quality', export complexity, and labour union density on income inequality. We have indications that neo-liberal globalization, measured using the KOF globalization index and sub-indicators, is positively correlated with income inequality. We have also indications that institutional 'quality', that is, mechanisms of 'good governance', tend to reduce income inequality. Importantly, the level of economic or export complexity and the degree of labour unionization were also found to reduce income inequality, while improving institutional 'quality' and mitigating downward pressures on wages.

show abstract

Foreign Direct Investment in Southeastern Europe: How (And How Much) Can Policies Help?

Cited by 24 publications

References 39 publications

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Inozemna Izravna Ulaganja U Zemlje Jugoistočne Europe: Ulažu Li Međusobno I Do Koje Mjere Zemlje Regije?

Neo-liberal Globalization and Income Inequality: Panel Data Evidence from OECD and Western Balkan Countries

Contact Info

Product

Resources

About