scholarly journals Foreign Direct Investment In Transition Economies: An Institutional Approach

2011 ◽  
Vol 6 (12) ◽  
Author(s):  
Agim Kukeli
Keyword(s):  
Foreign Direct Investment ◽  
Transition Economies ◽  
Direct Investment ◽  
Physical Capital ◽  
Seemingly Unrelated Regression ◽  
Institutional Setting ◽  
Diffusion Of Technology ◽  
Institutional Approach ◽  
Unrelated Regression

Foreign direct investment (FDI thereafter) is very important for economic growth in transition economies. They have major impact in economic development as a source of physical capital, diffusion of technology, improvements in management and marketing techniques, and enhancing institutional setting of these economies toward market oriented. In this paper, an institutional approach to FDI inflow is investigated to identify relevant factors that have shaped and influenced transition economies. The role of institutions in the inflow of FDI in transition economies is estimated empirically by using Seemingly Unrelated Regression Estimation (SURE) technique.

Foreign direct investment in European transition economies—The role of policies

2007 ◽  
Vol 35 (2) ◽  
pp. 369-386 ◽  
Author(s):  
Dimitri G. Demekas ◽  
Balázs Horváth ◽  
Elina Ribakova ◽  
Yi Wu
Keyword(s):  
Foreign Direct Investment ◽  
Transition Economies ◽  
Direct Investment

scholarly journals International trade and foreign direct investment as growth stimulators in transition economies: does the impact of institutional factors matter?

2017 ◽  
Vol 14 (4) ◽  
pp. 148-170 ◽  
Author(s):  
Antonis Tsitouras ◽  
Athanasios Koulakiotis ◽  
Georgios Makris ◽  
Harry Papapanagos
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Transition Economies ◽  
Direct Investment ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Physical Capital ◽  
Positive Contribution ◽  
Institutional Variables ◽  
The Impact

The present paper develops a general production function framework, augmented with two institutional variables namely bureaucracy and corruption on 28 transition economies over the period 2000-2015. The authors use various econometric specifications and apply both the Fixed Effects, as well as the advanced system Generalized Method of Moments (GMM) panel data techniques. Empirical findings suggest that the impact of openness in terms of foreign direct investment and international trade is advantageous to all the economies of the panel. Furthermore, the findings indicate that classical growth determinants, such as labor and physical capital, have the expected positive contribution, while macroeconomic instability has a negative effect on real economic activity. Regarding the impact of the two institutional variables, corruption, and bureaucracy, the authors retrieve more influential results, as their impact appears to be diametrically opposite between the former Soviet Union states and the rest of European transition economics.

Determinants of Foreign Direct Investment in Indonesia

2022 ◽  
pp. 097491012110678
Author(s):  
Barli Suryanta ◽  
Arianto A. Patunru
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Physical Capital ◽  
Unskilled Labor ◽  
Macroeconomic Factors ◽  
Factor Endowments ◽  
Open Policy ◽  
Vertical Fdi ◽  
Horizontal Fdi

We examine what determines the flow of foreign direct investment (FDI) in Indonesia, focusing on the role of institutional measures. A knowledge-and-physical-capital (KPC) model is applied to a panel dataset that covers 42 of Indonesia’s FDI partners from 2004 to 2012. Evidence shows that both horizontal and vertical FDIs coexist in the bilateral aggregate data of Indonesia’s FDI flows, but horizontal FDI appears to be dominant. This can be explained by the market size (proxied by the total GDP of both countries and similarity in incomes per capita) and the relative factor endowments (proxied by skilled labor and physical capital). The vertical FDI, on the other hand, could be only explained by the significant effect of unskilled labor. Institutional factors, particularly corruption, are apparently important in affecting Indonesia’s bilateral FDI flows. The results also show that a higher FDI level in Indonesia positively correlates with macroeconomic factors, open policy factors, and utility infrastructure factors.

scholarly journals THE ROLE OF INVESTMENT PROMOTION AGENCIES IN ATTRACTING FOREIGN DIRECT INVESTMENT

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 41-57 ◽  
Author(s):  
Algirdas Miškinis ◽  
Mariya Byrka
Keyword(s):  
Foreign Direct Investment ◽  
Qualitative Methods ◽  
Direct Investment ◽  
Investment Promotion ◽  
Institutional Approach

Establishing an investment promotion agency (IPA) has become a very popular institutional approach in the strategic promotion of foreign direct investment (FDI) across nations and regions worldwide. In this article, we examine the role of IPAs in improving the FDI environment and promoting inward FDI. The task of the article is, with the help of qualitative methods of research, to determine the promotion techniques and tools that lead to a better FDI performance and verify them in the cases of such investment promotion agencies as Invest Lithuania and Invest in Lviv Region (Ukraine).

scholarly journals Effects of foreign direct investment on the restructuring of the see economies

2015 ◽  
pp. 543-555
Author(s):  
Natasa Stanojevic ◽  
Slobodan Kotlica
Keyword(s):  
Foreign Direct Investment ◽  
Transition Economies ◽  
Direct Investment ◽  
Economic Transformation ◽  
Positive Contribution ◽  
Managerial Practices ◽  
Technology Transfers ◽  
Negative Effect ◽  
Important Means

This paper considers the role of foreign direct investment (FDI) in the transformation and development of post-socialist transition economies, with some particular review of the example of Republic of Serbia. Given the post-socialist countries had a significant deficiency of inner capacities, FDI was considered as the most important means of providing financial capital, technologies, organizational and managerial practices and access to foreign capital markets. Such expectations were supported by the theories of positive contribution of FDI to the economic transformation of transition countries. Over the past decade, transition economies have been the fastest-growing host for FDI, but there are not expected results. FDI has not contributed much to the industrial improvement or to the promotion of competitiveness and exports, and the new empirical evidence even points to negative effect of FDI penetration on domestic market. Considering the great disparity between potential and realized effects of FDI on the economic development of these economies, this paper explores the main sources of failure. The first is the type of FDI, with predominating acquisitions and privatizations along with less sophisticated technology transfers; the second refers to the sectoral distribution, primarily in non-tradable services and goods, which means that FDI contributes only to the market spread of the investors. These features of FDI created the mechanisms of disarticulation of host economies, with a decrease in economic growth as a result.

Sign in / Sign up

Export Citation Format

Share Document