scholarly journals The Impact of Foreign Direct Investment in the Western Balkan Countries - A Panel Data Analysis

2021 ◽  
Vol 16 (6) ◽  
pp. 1185-1190
Author(s):  
Nexhat Shkodra ◽  
Xhevat Sopi ◽  
Florentina Xhelili Krasniqi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Random Effects ◽  
Direct Investment ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Random Effects Model ◽  
Balkan Countries ◽  
The Impact

Foreign Direct Investment (FDI) has a significant effect on the economic growth and development of host economies, but also on international economic integration through globalization. Particular aspects of this topic are being extensively addressed by scientific research in recent decades. The purpose of this paper is to determine whether globalization and through it the Foreign Direct Investment (FDI) has an impact on the economic growth (GDPgr) of the Western Balkan countries which are facing a transitional phase. The relation between FDI and economic growth has been analyzed by employing econometric models with panel data approach: linear regression with poled data, the Fixed Effects model, and the Random-Effects model (GLS). The study is based on panel data of six countries for the period between 2004-2018, obtained by the World Bank. The results of the Random Effects model (GLS) shown that lagged FDI has a significant impact on the economic growth (GDPgr) of the Western Balkans (p<0.05%), as well as gross capital formation (Cap) and government expenditure (Gov) whereas export (Ex) has been excluded from the model. The results also shown that there are significant differences in the factors influencing economic growth among countries in the region (LM Method - Breusch-Pagan test; p=0.02455 < 0.05).

Does Corruption Affect Foreign Direct Investment (FDI) Inflows in SADC Countries?

2020 ◽  
Vol 5 (2) ◽  
pp. 166-174
Author(s):  
Moses Garai Chamisa
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Random Effects ◽  
Direct Investment ◽  
Economic Transformation ◽  
Random Effects Model ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
The Impact

Foreign Direct Investment (FDI) is a crucial factor to development in SADC, while at the same time corruption continues to be an obstacle to economic transformation in these countries. Empirically, studies provide controversial results on the effect of corruption on FDI. Some studies conclude that corruption negatively impacts FDI inflows in a country, while others provide evidence that corruption can act as a ‘helping hand’ to FDI inflows in a country. Given this ambiguity in the results of previous studies, using panel data for the period 2000-2016 for 15 SADC countries, this study examines the impact of corruption on FDI inflows in these countries. Lack of attention in previous studies on the impact of corruption on FDI inflows in SADC motivated this research. Estimation results using robust random effects model show that when corruption is widespread in a country, foreign investors are reluctant to invest. Thus, corruption negatively affects FDI inflows in SADC countries. The study recommends that SADC countries should develop and implement efficient, effective and strong anti-corruption measures to reduce corruption and hence increase FDI inflows.

scholarly journals The Impact Analysis of Foreign Direct Investment on Export: The Case of the Western Balkan Countries

2020 ◽  
Vol 58 (2) ◽  
pp. 171-186
Author(s):  
Marko Savićević ◽  
Milan Kostić
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Economic History ◽  
Direct Investment ◽  
Fixed Effects ◽  
Impact Analysis ◽  
Balkan Countries ◽  
Eastern European Countries ◽  
Sustainable Economic Growth ◽  
The Impact

AbstractIn order to improve the competitive position and ensure continuous and sustainable economic growth in the international market, Western Balkan countries have recognized export sectors and branches as success generators. However, the low accumulation of economies in the region and insufficient export orientation have led to a major reliance on foreign direct investment (hereinafter: FDI), which have become the drivers of the economic growth of some sectors. The aim of this research is to evaluate the impact of FDI inflows on export trends in the Western Balkan countries, as well as in some Central and Eastern European countries, that have a similar political and economic history as the Western Balkan countries. These countries were used as a basis for comparing and interpreting results related to the Western Balkan countries. Panel regression with fixed-effects is a method that was applied in attempt to determine the real impact of FDI on export. The research that has been conveyed shows that there is a statistically significant positive effect of FDI on the growth of the Western Balkan countries export. Anyway, the model describes only a small impact on the export, which means that the growth of the export should be looking more into some other factors, rather than in the invested capital origin.

scholarly journals DETERMINASI PERTUMBUHAN EKONOMI DI TUJUH NEGARA ASEAN PERIODE TAHUN 1996-2013

Media Ekonomi ◽  
2015 ◽  
Vol 23 (2) ◽  
pp. 107
Author(s):  
Desyana Eka Pramasty ◽  
Lydia Rosintan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Data Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Foreign Debt ◽  
National Income ◽  
Negative Effect ◽  
Asean Countries

<p><em>Economic growth is also one of the most important indicators</em><em> </em><em>in determining the standard of living of people in a country, because of an increase in the production capacity of an economy that is manifested in the form of national income. Economic growth is an indication of the success of economic development, measured by comparing, for example, for domestic size, Gross Domestic Product (GDP) in the current year with the previous year. This study aimed to analyze the factors that affect economic growth in seven ASEAN countries period from 1996-2013. This study use panel data analysis. The factors that affect economic growth in seven ASEAN countries, namely foreign debt, foreign direct investment, and the rate of inflation. Based on panel data analysis of the results showed that the foreign debt has negative effect and significant on economic growth, foreign direct investment has positive effect and significant on economic growth and inflation rate has negative effect and significant on economic growth in seven ASEAN countries period from 1996-2013.</em></p>

scholarly journals FORECASTING MONEY DEMAND WITH THE INCLUSION OF FINANCIAL INNOVATION FOR THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS: EVIDENCE FROM PANEL DATA ANALYSIS

2019 ◽  
Vol 1 (1) ◽  
pp. 59-74
Author(s):  
Payam Mohammad Aliha ◽  
Tamat Sarmidi ◽  
Fathin Faizah Said
Keyword(s):  
Time Series ◽  
Panel Data ◽  
Random Effects ◽  
Money Demand ◽  
Fixed Effects ◽  
Random Effects Model ◽  
Fixed Effects Model ◽  
Demand For Money ◽  
Financial Innovations ◽  
The Impact

This paper investigates the impact of financial innovations on the demand for money using a dynamic panel data for 10 ASEAN member states from 2004 to 2012 and attempt to forecast the demand for money during 2013 – 2016 to compare between forecasting performance of the fixed effects model with that of random effects model and also to compare the forecasting accuracy of dynamic forecasting and static forecasting obtained from these two models. An autoregressive model by definition is when a value from a time series is regressed on previous values from that same time series. There are two types of forecasting namely dynamic forecast and static forecast. “Dynamic forecast will take previously forecasted values while static forecast will take actual values to make next step forecast. Panel effects models assist in controlling for unobserved heterogeneity when this heterogeneity is constant over time and correlated (fixed effects) or uncorrelated (random effects) with independent variables. Hausman test indicates that the random-effects model is appropriate. We use the conventional money demand that is enriched with the number of automated teller machines (ATM) to proxy for the effect of financial innovations on money demand. By comparing the magnitude of “Root Mean Squared Error” (RMSE) as a benchmark for the two forecasts (0.1164 for dynamic forecast versus 0.0635 for static forecast) we simply find out that static forecast is superior to dynamic forecast meaning that static forecast provides more accurate forecast compared to a dynamic forecast for the fixed-effects model. Therefore, we conclude the static forecast on the basis of the random-effects model provides the most accurate forecasting. The estimation result of the chosen random-effects regression also indicates the estimated coefficient of ATM is not significant meaning that ATM does not impact money demand in ASEAN countries.

Sign in / Sign up

Export Citation Format

Share Document