scholarly journals Exploring the Determinants Attractiveness to Foreign Direct Investments: Do Public Governance, Infrastructure and Macroeconomic Policies Matter?

2021 ◽  
Vol 13 (3) ◽  
pp. 63
Author(s):  
Adel BOGARI
Keyword(s):  
Eastern Mediterranean ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
Macroeconomic Policies ◽  
Public Governance ◽  
Fdi Inflows ◽  
Mediterranean Countries ◽  
Physical Infrastructure ◽  
Eastern European Countries ◽  
Governance Infrastructure

The aim of this paper is to determine the factors that attract Foreign Direct Investments (FDIs) to Central and Eastern European Countries (CEECs) and Southern and Eastern Mediterranean Countries (SEMCs). To this end, this paper tested three variables representing public governance, physical infrastructure and macroeconomic quality, over a ten-year period stretching from 2008 to 2017. The results of the regressions estimated on CEE countries show that entrepreneurs are attracted to this region mainly for governance and infrastructure quality. Macroeconomic policy variables seem to attract less FDIs to these countries. Using aggregated  variables, the results of the regressions estimated on SEMCs show that the governance variable becomes statistically significant but retains a low value. The other variables of physical infrastructure and macroeconomic policies seem to be more robust and better explain FDI inflows to this region.

Universal Model of theories determining FDI. Is there any dominant theory? Are the FDI inflows in the CEE countries and especially in Bulgaria a myth?

2003 ◽  
Vol 15 (2) ◽  
pp. 94-104 ◽  
Author(s):  
Aristidis Bitzenis
Keyword(s):  
Decision Making ◽  
Theoretical Model ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Decision Making Process ◽  
Universal Model ◽  
Eastern European ◽  
Fdi Inflows ◽  
Eastern European Countries ◽  
Dominant Theory

The paper refers to “a theoretical model” created by the author, named Universal Model, in which have been included most of the theories determining foreign direct investment (FDI). What derives from the literature review is that no theory dominates the decision‐making process of FDI. The opportunities a country has to offer change through time, and the different ways in which multinational enterprises (MNEs) evaluate the opportunities led the author to conclude that the concept of globalization is not valid for the theory of FDI. Special attention to the case of Bulgaria has been given. The main reason why the case of Bulgaria is of great interest is the fact that the conditions in the country at the beginning of its transition were some of the worst among the Central and Eastern European countries (CEEs). The conclusion is of extreme interest since economists, MNEs and entrepreneurs have a strong interest in countries that open their economies and target their efforts towards stabilizing and liberalizing their macro‐economic environment.

scholarly journals How Taxes Can Contribute to The Implementation of The Public Governance Strategy? – An Analysis for Eastern European Countries

2016 ◽  
Vol 26 (3) ◽  
pp. 18-32
Author(s):  
Cristina Vlad ◽  
Birol Ibadula ◽  
Petre Brezeanu
Keyword(s):  
Public Administration ◽  
Good Governance ◽  
European Countries ◽  
Eastern European ◽  
Public Governance ◽  
The Public ◽  
Social Contributions ◽  
Governance Strategy ◽  
Eastern European Countries ◽  
The Eu

Abstract The paper begins with a short literature review regarding the public governance concept in the EU approach and its methods for establishing a common way to manage different situations for all member states; we discovered that the problems they confront with have to do with good governance and qualitative public administration. In the second part, we developed an econometric model for three Eastern European countries and we found a strong correlation between the total revenues from taxes and social contributions and total gross debt in 2002-2014 period. We ended the paper by emphasizing the conclusions obtained.

scholarly journals Central and Eastern European Countries Toward the Belt and Road Initiative: The Role of 16+1 Initiative

2019 ◽  
Vol 11 (1-2) ◽  
pp. 11-36
Author(s):  
Monika Bąk
Keyword(s):  
European Countries ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
Belt And Road Initiative ◽  
The European Union ◽  
Belt And Road ◽  
Bilateral Cooperation ◽  
Eastern European Countries ◽  
The Belt And Road

The 16+1 concept (including 16 Central and Eastern European countries and China) is complementary to the Belt and Road Initiative (BRI). This article explores different aspects of cooperation between China and Central and Eastern European Countries (CEEC), focusing on the perception of cooperation through the prism of foreign direct investments (FDI) and individual Central and Eastern Europe-16 (CEE-16) countries (bilateral links between China and a given country against the background of CEE-16). This article is an attempt to present and interpret facts and issues related to cooperation as well as to explore rational applications in terms of future forms of cooperation. It is clear that there is a need to develop more effective mechanisms of cooperation, using the established secretariats and other institutions beyond them. The article also makes recommendations for bilateral cooperation between China and individual countries, including actions at the regional level. Moreover, the postulates resulting from this analysis indicate the need to harmonize and improve the availability of economic data relating to economic cooperation within the framework of the 16+1 initiative, especially in the context of the group of European countries outside the European Union (EU).

scholarly journals Institutional competitiveness of Central and Eastern European countries and the inflow of foreign direct investments

Catallaxy ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 87-96
Author(s):  
Magdalena Owczarczuk
Keyword(s):  
Quality Assessment ◽  
Western Europe ◽  
Recipient Country ◽  
Developed Countries ◽  
European Countries ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
Global Competitiveness ◽  
Per Capita ◽  
Eastern European Countries

Motivation: Central and Eastern European countries (CEE) in spite of a long period of European Union membership and integration with the developed economies of Western Europe are still on the path of convergence, i.e. pursuing the highly developed countries in terms of, among others, GDP per capita. Assuming that the FDI inflow carries numerous benefits for the economic growth of the recipient country, those economies still compete against one another for foreign capital. One of the factors that attracts FDI is high quality of institutional surrounding. Aim: assessment of institutional competitiveness of the selected CEE countries (Czech Republic, Estonia, Lithuania, Latvia, Poland, Slovakia, Slovenia, Hungary) as well as verification of the relationship between institutional competitiveness and the FDI inflow to the analyzed economies. Materials and methods: The article reviews positions obtained by the selected CEE countries in the ranking of competitiveness published by Global Economic Forum (Global Competitiveness Report). The analysis and assessment of CEE countries competitiveness focused around the institutional quality assessment. Quantitatively, the connection was revealed between competitiveness ranking in the field of institutions and FDI inflow per capita and FDI as % of GDP to the economies under consideration. Results: the analysis of the global competitiveness index (GCI) allows to notice that among the CEE countries, Estonia is characterized with the highest institutional competitiveness. The detailed analysis indicated that low social capital quality decreases institutional competitiveness in case of all analyzed economies. The conducted quantitative analysis of the potential link between the GCI?Pillar 1. Institutions index and the inflow of foreign direct investments to CEE countries indicates the positive correlation of those variables. Higher index values (institution quality assessment) corresponds to the higher FDI per capita level and FDI calculated as GDP percentage.

scholarly journals An Emperical Study on the Strategies to Attract Foreign Direct Investments in Tanzania

2012 ◽  
Vol 3 (1) ◽  
pp. 43
Author(s):  
Abdulla R. Abdulla ◽  
Maryam M. Othman ◽  
Zhao Hongzhong
Keyword(s):  
Political System ◽  
Foreign Direct Investments ◽  
Investment Strategies ◽  
Economic Management ◽  
Institutional Reforms ◽  
Fdi Inflows ◽  
Regulatory Frameworks ◽  
Physical Infrastructure ◽  
Political Conditions ◽  
Fdi Determinants

This paper dwells on the investment strategies in attracting FDI into Tanzania, the investment reforms have been expected to become a major factor responsible for the increased FDI inflow in to the country, these reforms including political system, economic management and government administration. Despite of the several efforts such as the far reaching reform in the economy done by Tanzania to increase FDI inflows in the country, the results are far from satisfactory. It has been revealed that the unsatisfactory FDI inflow into Tanzania is primarily caused by the improper strategies resulted from the inadequacy of FDI determinants in the country. The study found that Tanzania lacks the adequate strategies due to poor FDI determinants that would attract a substantial FDI inflow into the country. This makes it necessary for the country to make sure that the determinants like better infrastructure, adequacy of government agencies; favorable macro economic, political conditions are available in adequate amount and quality. It is concluded that proper strategies in influencing investment regulatory frameworks, policies that promote macroeconomic stability, improved physical infrastructure and institutional reforms are important in attracting more FDIs into a country and therefore are highly recommended.

scholarly journals Comparative analysis of economic growth determinants in Romania and Central and Eastern European countries

2019 ◽  
Vol 1 (1) ◽  
pp. 162-170
Author(s):  
Cristina Căutişanu ◽  
Mariana Hatmanu
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Generalized Least Squares ◽  
European Countries ◽  
Communist Regime ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
Fixed Effects Model ◽  
Economic Determinants ◽  
Eastern European Countries

Abstract Economic growth is one of the most studied topics in the literature in the field due to its significant role in the development of each country. Studies divide economic determinants into two categories based on their influence on economic growth: endogenous and exogenous. The study aims to estimate economic growth against two types of determinants for Romania and Central and Eastern European countries using data for 1995-2017 in order to compare the two cases. For Romania, we used time series specific methods (e.g. stationarity checking using Augmented Dickey-Fuller test, OLS model). In case of Central and Eastern European countries, we employed methods specific for panel data (e.g. estimation of the OLS general model, fixed effects model, random effects model, and feasible generalized least squares model). The results showed that in Romania, in the studied period, only the exogenous determinants (e.g. high technology exports) have a significant influence on economic growth, while Central and Eastern European countries were influenced by both types of determinants (e.g. life expectancy, foreign direct investments). In case of Romania, foreign direct investment did not represent a significant determinant for economic growth during 1995-2017 due to slower transition from communist regime to market economy.

The determinants of foreign direct investment inflows in the Central and Eastern European Countries: The importance of institutions

2013 ◽  
Vol 46 (2) ◽  
pp. 287-298 ◽  
Author(s):  
Cem Tintin
Keyword(s):  
Civil Liberties ◽  
Trade Openness ◽  
European Countries ◽  
Eastern European ◽  
Political Rights ◽  
Institutional Variables ◽  
Fdi Inflows ◽  
State Fragility ◽  
Determinant Factors ◽  
Eastern European Countries

This study investigates the determinants of FDI inflows in six Central and Eastern European countries (CEEC) by incorporating the traditional factors and institutional variables over the 1996–2009 period. The study identifies whether and how these determinant factors differ across four investor countries (EU-15, the US, China, and Japan). The results verify the positive and economically significant role of GDP size, trade openness, EU membership, and institutions (measured by economic freedoms, state fragility, political rights, and civil liberties indices) on FDI inflows. The results also reveal the existence of notable differences in the determinant factors across four investor countries.

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