The Effect of Foreign Direct Investments on Trade Balance in Southeast Europe during the Period 2000–2018

Qehaja, Driton; ZEKA, Fatlum; Hoti, Arber H.

doi:10.33094/ijaefa.v13i1.611

Cited by 4 publications

(1 citation statement)

References 22 publications

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“…Furthermore, while some research indicates that foreign direct investments have a positive effect on the level of real GDP growth, many others do not. In general, FDI has had a favorable impact on the amount of exports and imports in Western Balkan countries, expressed as a percentage of GDP, according to Qehaja, Zeka, and Hoti (2022). Similarly, no one can agree on the relationship between government spending and economic growth.…”

Section: Development Of Hypothesesmentioning

confidence: 99%

Public spending and economic growth: Evidence from the Western Balkans

Mustafa,

Abdullahu

2024

IJAEFA

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The objective of this study is to examine the relationship between public expenditures, foreign investments, and the growth of the Gross Domestic Product (GDP) for the years 2002-2021 in the countries of the Western Balkans (BB6) and Croatia. The analysis includes data on $2.8 trillion of GDP, $668 billion of public expenditures, and $160 billion of FDI for these states. The methodology used in this study is based on a detailed examination of public expenditures and their impact on the Gross Domestic Product. This article investigates two hypotheses, thoroughly assessing their impact on GDP growth. Through the use of the Ordinary Least Squares (OLS) econometric model, concrete results with over 95% reliability have been obtained. The variables are determined based on multiple regressions for the findings we will obtain based on econometric calculations using the fixed effects, standard deviation, mean, and linear regression models. The findings of this study relate directly to the stated aims and objectives of the publication. The results presented in the study are an essential component of the study's conclusions. We found that some independent factors have a uniform impact on GDP growth, while others have a significant impact on real growth. Also, our findings confirm economic theories that argue that an increase in government spending leads to an increase in GDP. The data show that public investment in the Western Balkans has historically been overlooked, a gap in the literature that our research attempts to fill.

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Section: Development Of Hypothesesmentioning

confidence: 99%

Public spending and economic growth: Evidence from the Western Balkans

Mustafa,

Abdullahu

2024

IJAEFA

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Foreign aid impact on the economic growth of the Western Balkans during 2009–2021

Hoxhaj,

Qehaja

2024

IJDI

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Purpose The purpose of this study is to investigate the role of foreign aid in the Western Balkans countries’ economic growth between 2009 and 2021. Design/methodology/approach This paper uses a panel data approach to examine the effects of foreign aid on economic growth in the region and incorporates a random-effects model to accommodate the unique cross-country variations and time-specific factors, as well as a pooled OLS and fixed-effects model for a comprehensive, comparative analysis. Findings The in-depth regression analysis shows that foreign aid has not had a significant impact on the economic growth of the region. Further evidence suggests that trade openness exhibited a significant positive correlation with economic growth, while gross capital formation, although positively associated, did not significantly impact it, indicating the complexity of its role in the region’s economies. Practical implications The analysis presented in this study has significant practical implications, particularly for policymakers in the Western Balkans. Given the region’s ambitions for European Union membership and the challenges of high unemployment and inflation, understanding the role of foreign aid is crucial. Originality/value This research provides a unique contribution to the field of development economics by examining foreign aid effectiveness within the context of a region often overlooked in the literature. The analysis also offers fresh insights into the complex dynamics of foreign aid and its implications for policy and development strategies.

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Building bridges: impact of regional cooperation and the belt and road initiative integration on Afghanistan’s trade balance

Zakirullah,

Tian,

Imran

2024

IJRBS

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The main purpose of the study is to shed light on how the Belt and Road Initiative, Foreign Direct Investment, and Regional Cooperation affect Afghanistan's Trade Balance. In research, we used a mixed-methods approach to thoroughly investigate the relationships among distinct variables. The exploratory factor analysis (EFA) and reliability analysis were carried out using SPSS and AMOS was utilized in the research to validate the data and establish a measurement model, for confirmatory factor analysis (CFA). The study found that integration with BRI has a significant impact on Afghanistan’s trade balance (M = 3.925, SD = 1.048), with effective regional cooperation Afghanistan can enhance trade, ease barriers, and promote cooperation with neighboring countries (M = 4.017, SD = 1.095). Trade Balance (M = 3.938, SD = 1.112), Also, the importance of attracting FDI is to boost exports and reduce dependence on imports and it is necessary to implement policies for sustainable development (M = 3.983, SD = 1.096). To promote trade, and cooperation and ensure prosperity in the region, the governments can utilize strategic cooperation and create investment opportunities. In conclusion, the study found the importance of cooperation, strategies, and attracting FDI to address both trade facilitation and promote investment for a positive impact on trade balance and influence development.

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The Effect of Foreign Direct Investments on Trade Balance in Southeast Europe during the Period 2000–2018

Cited by 4 publications

References 22 publications

Public spending and economic growth: Evidence from the Western Balkans

Public spending and economic growth: Evidence from the Western Balkans

Foreign aid impact on the economic growth of the Western Balkans during 2009–2021

Building bridges: impact of regional cooperation and the belt and road initiative integration on Afghanistan’s trade balance

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