An analysis of the determinants of foreign direct investment in Europe Cover Image

Analiza determinant bezpośrednich inwestycji zagranicznych w Europie
An analysis of the determinants of foreign direct investment in Europe

Author(s): Paweł Sekuła
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: determinants of foreign direct investment; models with panel data

Summary/Abstract: This paper examines the economic and institutional determinants of FDI in European countries, from 1996 to 2011. This study utilized the panel data model to examine this issue. The observations confirmed the presence of significant differences between the variables of FDI in developed and developing countries. The empirical results support that FDI in developed countries is positively correlated to population and regulatory quality index. For developing countries the impact of GDP growth , GDP per capita and government effectiveness index are significant. It is interesting that the lack of political freedom and the rule of law and order does not have a negative impact on FDI in developing countries.

  • Issue Year: 2013
  • Issue No: 315 vol 2
  • Page Range: 211-220
  • Page Count: 10
  • Language: Polish