scholarly journals Foreign Direct Investment Impact on Economic Indicators of the Baltic Countries

2016 ◽  
Vol 28 (1) ◽  
pp. 61-67
Author(s):  
Aida Barkauskaite ◽  
Violeta Naraskeviciute

Abstract The foreign direct investment movement is becoming increasingly important nowadays. Various studies are conducted to determine the influence of foreign direct investments on certain countries. That is why it is important and useful to evaluate and compare how foreign direct investments affect the economic indicators of the Baltic countries - countries having similar economies. Methods used in the analysis are: logical comparative and generalization methods, systematic literature analysis and methods of mathematical statistics. The results have showed that foreign direct investments have positive influence on economies through gross domestic product and labour productivity growth in all Baltic countries, though foreign direct investments do not influence the unemployment rate in all Baltic countries

2016 ◽  
Vol 8 (2) ◽  
pp. 212-200 ◽  
Author(s):  
Greta Lukoševičiūtė ◽  
Raimonda Martinkutė-Kaulienė

In order to ensure economic growth it is necessary to pay attention to the investments. The bigger amount of investments and their profitability grants the bigger scale of country‘s production and its growth. In the paper foreign direct investments (FDI) in the Baltic Countries were analysed. The theoretical evaluation of foreign direct investment on economic development of country was submitted. It was theoretically analysed the factors that attract foreign direct investment. Based on statistical data FDI and GDP dynamics in the Baltic countries was analysed. FDI flows and GDP connection using correlation and regression analysis was evaluated. Results of analysis was used to evaluate foreign direct investment influence on economic development of Baltic Countries. Stengiantis užtikrinti ekonominį augimą būtina atkreipti dėmesį į investicijas. Kuo didesnės investicijų apimtys ir jų pelningumas, tuo didesni šalies gamybos mastai ir aukštesni jos didėjimo tempai. Straipsnyje nagrinėjamos tiesioginės užsienio investicijos (TUI) Baltijos šalyse 2008–2014 metais. Pateikiamas teorinis tiesioginių užsienio investicijų daromos įtakos vertinimas šalies ekonominei raidai. Teoriškai analizuojami veiksniai, skatinantys tiesiogines užsienio investicijas. Remiantis statistiniais duomenimis, ištirta TUI srautų bei BVP dinamika Baltijos šalyse per 2008–2014 metus. Taikant koreliacinės regresinės analizės metodus tiriamas TUI ir BVP ryšys. Pagal tyrimo rezultatus įvertinama tiesioginių užsienio investicijų daroma įtaka Baltijos šalių ekonominei raidai.


2020 ◽  
Vol 185 (9-10) ◽  
pp. 99-107
Author(s):  
Atom Margaryan ◽  
◽  
Haroutyun Terzyan ◽  
Emil Grigoryan ◽  
◽  
...  

We examine the institutional and investment developments in the telecommunications sector of Armenia in the last two decades and compare them with those of the Baltic countries, namely, Latvia and Lithuania. In particular, directions of foreign investments made in the sector and the impacts on economic and technological systems of Armenia and the chosen Baltic countries have been thoroughly analyzed. During the analysis, an economic model has been used to assess the impact of foreign direct investments on the income (revenues) of the telecommunications sector of the countries under investigation. Econometric analysis made it possible to consider the above-mentioned links in more depth and in detail. First, a correlation analysis has been carried out which has proved the validity of the hypotheses that there is a strong connection between FDI and the revenue of the telecommunications sector in Armenia and Latvia in the considered time period of 2009-2019. The causal roots of the relationships between the two variables have been studied. After processing the statistical data and refining the model specifications, an econometric model for Armenia has been proposed with the help of which the key relationships have been clarified. The evaluated model, which satisfies the basic quality of econometric models, helped to draw important conclusions on the depth and nature of the impact of foreign direct investment volume on the income of the telecommunications sector in Armenia. The model clearly shows the unstable influence of foreign direct investments on income, which confirms the riskiness of the Armenian economy as a whole, since the country has been in an economic blockade and in a state of war with a neighbouring state for more than 20 years.


2020 ◽  
pp. 212-222
Author(s):  
Inna Kudryashova ◽  
Marina Pleshakova ◽  
Inna Ryabova

Foreign direct investment (FDI) has played a key role in the efforts to achieve a sustainable economic growth and high social and economic indicators in many countries and regions of the world. The paper focuses on the analysis of the role of foreign direct investment in the economy of Volgograd region. The author uses the comparative analysis, historical and statistical methods, and correlation analysis. The analysis of the indicators of 2011–2019 shows a small share of foreign direct investment in the gross regional product in Volgograd region in comparison with the Russian Federation, and insufficient provision of regional economy with labour resources. The comparison shows a discrepancy between the real needs and sectoral distribution of foreign direct investment in the regional economy. The research on the country and type composition of FDI in Volgograd region reveals some positive trends. The share of investments in the form of capital in comparison with the share of debt capital has increased; the share of off-shore foreign direct investment has decreased. The correlation analysis reveals a moderate or weak relationship between foreign direct investment and key economic indicators of Volgograd region, i.e. gross regional product, employment rate, average monthly income of the population, depreciation of fixed assets and labour productivity. The results show the need to develop special measures to maximize benefits from the cooperation of regional businesses and foreign investors in Volgograd region.


Equilibrium ◽  
2009 ◽  
Vol 3 (2) ◽  
pp. 111-123
Author(s):  
Michał Ozga

The foreign direct investments (FDI) have positive influence on the economy of regions, as such investments cause the inflow of innovative technologies and new management techniques and create new work places. Foreign direct investments contribute to the economic growth of Poland. This article explains the importance of the FDI for the economy of regions, presents the differentiation in the volume of foreign direct investments in different voivodships of Poland and shows the influence of these investments on the disproportions between provinces of Poland. This article also presents the dependence of the macroeconomics indicators on foreign direct investment.


2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.


2021 ◽  
pp. 253-265
Author(s):  
MILOŠ PJANIĆ ◽  
MIRELA MITRAŠEVIĆ

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.


2021 ◽  
Vol 4 (9) ◽  
pp. 43
Author(s):  
Thomas Mosbei ◽  
Silas Kiprono Samoei ◽  
Clement Cheruiyot Tison ◽  
Edwin Kipyego Kipchoge

East Africa Community exchange rate volatility spiraled up when the countries adopted the Structural Adjustment Policies in early 1980s. The question that remains unanswered is whether exchange rate volatility hinders or promotes trade. The objective of this study was to determine the effect of exchange rate volatility and its effect on Intra-East Africa community regional trade. Unit root tests results indicated that some of the variables were stationary at levels and on first difference, all variables were I(1). Differenced panel data was fitted into the General Autoregressive Conditional Heteroscedasticity model to measure volatility. Hausman test showed that the fixed effect model was appropriate exchange rate, money supply, population and foreign direct investment significantly determines intra-East Africa Community regional trade. It was concluded that exchange rate volatility is observable in the Intra-East Africa region and further, exchange rate, money supply, population, and foreign direct investment significantly influenced intra-EAC regional trade. It is recommended that EAC member states should formulate policies that ensures exchange rate stability in the region to reduce unpredictability of exchange rate. Policies should be enacted to guarantee adequate money supply and encourage foreign direct investments.


2018 ◽  
Vol 2018 (3) ◽  
pp. 8-20
Author(s):  
Zbigniew Taylor ◽  
Ariel Ciechański

The purpose of this study is to investigate the changes and draw generalizations relating to the processes of foreign direct investments (FDI) in the non-urban public transport in the countries of the Visegrad Group (Poland, Czech Republic, Slovakia and Hungary), after 1989. The processes observed lead mainly to the so-called brownfield investments and cover both bus operators, as well as rail carriers. The focus is placed on comprehensive overview of the activities of the largest investor (the German national railway DB) existing in all four countries of the V4 Group, and leading railway services in the most of the described countries.


2015 ◽  
Vol 67 (1) ◽  
pp. 79-105 ◽  
Author(s):  
Sandra Stojadinovic-Jovanovic

It is not necessary to explain the importance of foreign direct investment, particularly in less developed countries, bearing in mind the numerous theoretical and empirical papers that confirm their importance and effects that the inflow of these investments in the country can make. The movement of these investments on the global level is characterized by significant changes, especially in recent years, in their volume, geographically distribution as well as in the conditions in which they take place - conditions of instability and crisis interruptions, growing regional and interregional integration and altered foreign direct investment policies. Trends in their movements are mirrored in individual countries, stressing on the need for their continuous monitoring and detailed analysis. Therefore the paper will identified the key trends that characterize the contemporary global flows of foreign direct investments.


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