Foreign Direct Investments and Economic Growth in Central and Eastern Europe: A Panel-Based Analysis

  • Lucian Belaşcu
  • Oana Popovici
  • Alexandra Horobeţ
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

One of the most discussed issues related to foreign direct investments (FDI) refers to the impact they have on the economic and social welfare of a country. Moreover, if these effects are positive, the question is to what extent and by what instruments they can be enhanced by host country governments. In recent decades, the general political opinion on FDI changed, as they are rather understood as generating competitiveness and growth for host countries and less in terms of their negative effects on the economy. Our paper investigates the relationship between FDI flows and economic growth in countries from Central and Eastern Europe that are also EU members using the panel methodology and implementing various panel specifications that shed light on the particularities of this relationship among the five countries. We find that FDI have a positive contribution to economic growth in these economies, together with capital and, to some extent, international trade size, but also that country and period idiosyncrasies matter for a better understanding of economic growth determination.

Keywords

Foreign direct investments Central and Eastern Europe Panel analysis 

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Lucian Belaşcu
    • 1
  • Oana Popovici
    • 2
  • Alexandra Horobeţ
    • 2
  1. 1.Lucian Blaga University of SibiuSibiuRomania
  2. 2.Bucharest University of Economic StudiesBucharestRomania

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