Оригинална статия International Economics

EXPORTS AND FOREIGN DIRECT INVESTMENT AS FACTORS FOR ECONOMIC GROWTH IN THE EU NEW MEMBER STATES

Grigor Stoevski - European Central Bank
Received: 10 Jun 2022
Revised:
Published:
Downloads: 0
Citations: 0
Issue 2/2015
JEL F43 O47 C23 E10
DOI https://doi.org/10.56497/etj1560203

Abstract

The relationships between the inward foreign direct investment and the export dynamics, on the one hand, and the economic growth, on the other, are studied. Panel econometric estimates confirm the hypotheses for an export-oriented and/or (domestic and foreign) investment-based economic growth for the EU New Member States in the past fifteen years. A factor contribution analysis reveals the leading role of exports as well as the positive contributions of a similar magnitude of domestic and foreign direct investment for the economic activity dynamics. The implementation of economic policies by the EU New Member States aimed at promoting the export orientation of domestic production and maintaining an attractive business environment for foreign direct investors could be recommended based on these empirical results.

References

Abiad, A., D. Leigh and A. Mody (2009). Financial Integration, Capital Mobility and Income Convergence. - Economic Policy, 24.

Balassa, B. (1978). Exports and Economic Growth: Further Evidence. - Journal of Development Economics, N 5, p. 181-189.

Balkanska, I. (2009). Foreign Direct Investments in Bulgaria: Do They Have an Effect on the Economic Development of the Country? - Economic Studies, XVIII, 1.

Ganchev, D. (2010). Foreign direct investment for the period 1992-2008: conclusions and new challenges. - Economic Alternatives, N 2 (in Bulgarian).

Ganev, K. (2005). Total factor productivity measurement: Bulgarian economic growth accounting. Discussion Papers, №48, BNB (in Bulgarian).

Cuaresma, J. C., C. F. Castejon, M. A. Silgoner, J. Woertz (2007). Blessing or curse? An industry-level analysis of FDI effects on productivity and wages in CEECs. - In: K. Liebscher, J. Christ, P. Mooslechner, D. Ritzberger-Grünwald (eds.). Foreign Direct Investment in Europe: a Changing Landscape. Edward Elgar Publishing.

Damijan, J. P. and M. Rojec (2007). Foreign Direct Investment and Catching Up of New EU Member States: Is There a Flying Geese Pattern? - Applied Economics Quarterly, 53(2), p. 91-118.

Dunning, J. H. (1977). Trade, Location of Economic Activity and the MNE: A Search for an Eclectic Approach. – In: B. Ohlin, P. Hesselborn and P. Wijkman (eds.). The International Allocation of Economic Activity. London: Macmillan.

Feenstra, R. (1999). Facts and Fallacies about Foreign Direct Investment, in International Capital Flows. Feldstein, M. (ed.). NBER.

Fidrmuc, J and R. Martin (2011). FDI, Trade and Growth in CESEE Countries. - Focus on European Economic Integration, Q1/11.

Grossman, G. and E. Helpman, (1991). Innovation and Growth in the Global Economy. Cambridge, U.S.: MIT Press.

Helpman, E., M. J. Melitz, and S. R. Yeaple (2004). Export versus FDI with Heterogeneous Firms. - American Economic Review, Vol. 94, N 1.

Herzer, D., S. Klasen and F. Nowak-Lehmann D. (2008). In search of FDI-led growth in developing countries: The way forward. - Economic Modelling, 25, p. 793–810.

Lane, P. R. and G. M. Milesi-Ferretti (2006). Capital Flows to Central and Eastern Europe. IMF Working Paper, WP/06/188.

Lipsey, R. (2007). Measuring the Impacts of FDI in Central and Eastern Europe. - In: K. Liebscher, J. Christ, P. Mooslechner, D. Ritzberger-Grünwald (eds.). Foreign Direct Investment in Europe: a Changing Landscape. Edward Elgar Publishing.

Mileva, E. (2008). The Impact of Capital Flows on Domestic Investment in Transition Economies, ECB Working Paper 871, February.

Minassian, G. (2004). Financial programming, second edition. Sofia: Gorex Press (in Bulgarian).

Rangelova, R. (2008). Modern dimensions of economic growth. Dissertation for the award of the degree "Doctor of Economic Sciences", Institute of Economics at the Bulgarian Academy of Sciences (in Bulgarian).

Stattev St. (2009). Financial development and economic growth in Bulgaria, 1991-2006 (econometric analysis in the production function logic). Discussion Papers, N 72, BNB (in Bulgarian).


Tsalinski, Ts. (2006). Two approaches for measuring potential output in Bulgaria. Discussion Papers N 57, BNB (in Bulgarian).

BIS (2009). Capital flows and emerging market economies. Committee on the Global Financial System, CGFS Papers 33.

How to publish

Are you an author? Please read our publishing terms first.

Learn