Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries
| Autor: | Liliana Nicoleta Simionescu, Oana Simona Hudea, Ștefan Cristian Gherghina |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Macroeconomics
Geography Planning and Development panel co-integration foreign direct investment panel data regressions TJ807-830 Foreign direct investment Granger-causality Management Monitoring Policy and Law TD194-195 Gross domestic product Renewable energy sources Granger causality Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) Income distribution 0502 economics and business Per capita Economics GE1-350 050207 economics panel vector error-correction model Sustainable development 050208 finance Environmental effects of industries and plants Renewable Energy Sustainability and the Environment 05 social sciences economic growth Eastern european Environmental sciences Panel data |
| Zdroj: | Sustainability Volume 11 Issue 19 Sustainability, Vol 11, Iss 19, p 5421 (2019) |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su11195421 |
| Popis: | This study aims to examine the link between foreign direct investment (FDI) inflows and economic growth, also considering several institutional quality variables, as well as sustainable development goals (SDGs) set in the 2030 Agenda for Sustainable Development. By estimating panel data regression models for a sample of 11 Central and Eastern European countries, from 2003 to 2016, the empirical outcomes provide support for a non-linear relationship between FDI and gross domestic product per capita. Regarding institutional quality, it is found that control of corruption, government effectiveness, regulatory quality, rule of law, and voice and accountability positively influence growth, while political stability and absence of violence/terrorism is not statistically significant. Moreover, SDGs such as poverty, income distribution, education, innovation, transport infrastructure, and information technology are noteworthy drivers of growth. The outcomes of panel fully modified and dynamic ordinary least squares partly confirm the findings. The panel vector error-correction model Granger causalities provide support for a short-run one-way causal association running from FDI to growth and a long-run two-way causal connection among FDI and growth. Furthermore, in the long run, unidirectional causal relationships running from each institutional quality indicator to economic growth and FDI are set out. |
| Databáze: | OpenAIRE |
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