Foreign Direct Investments –Macroeconomic IDP Model Cover Image

Spoljne direktne investicije – Makroekonomski IDP model
Foreign Direct Investments –Macroeconomic IDP Model

Author(s): Ilija Ćalina
Subject(s): Economy
Published by: АЛФА БК УНИВЕРЗИТЕТ
Keywords: foreign direct investment; macroeconomic IDP (Investment Direct Path) model; NOIP (net output investment position); transition countries

Summary/Abstract: In this paper, an Investment Direct Path (IDP) macroeconomic model is set in the theoretical context. Verified by the example of the transition countries, it is necessary to emphasise the importance of two elements: (i) the characteristics of the size of the economy and (ii) the characteristics of the transition. Empirical tests of macroeconomic IDP model for selected transition countries, show that foreign direct investment and net investment position of the output of these countries move toward economic theory and the transition countries are within the expected status of development by IDP model. Therefore, a net output investment position (NOIP) of Serbia and Croatia becomes more negative, due to the rapid increase in the input of external direct investment in recent years, NOIP of Portugal and Slovenia is negative, but with a decreasing trend of deterioration of NOIP, which means that these countries are in the third or fourth stage according to the IDP model, while Austria shows the characteristics of the most developed EU countries where NOIP converge around the zero value. In addition to the macroeconomic IDP model, a structural and bilateral IDP model is analysed, in order to determine the differences within the investment position of countries by industry and bilateral relations with the economic partners of those countries.

  • Issue Year: 2014
  • Issue No: 2
  • Page Range: 55-66
  • Page Count: 12