FDI and Economic Growth in CEE Countries
FDI and Economic Growth in CEE Countries
Author(s): Lenuta Carp (Ceka)Subject(s): Supranational / Global Economy, International relations/trade, Economic development
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Foreign direct investments (FDI); Economic Growth; Granger Causality; Crisis;
Summary/Abstract: The aim of the current paper is to emphasize the correlation between FDI inflows and GDP growth rate in selected countries from Central and Eastern Europe (CEE). The dynamic of FDI inflows and GDP growth rate have been significantly affected by the current economic crisis, which has led to a decrease in foreign capital inflows and a restrained of investment projects. However, macroeconomic imbalances and increased volatilities have determined a strong contraction of GDP growth rates in these economies, except Poland which was the most resilient to worldwide shocks. The results show a unidirectional causality between FDI and GDP growth in all cases, except Hungary. Further analysis will be developed testing the impact of foreign flows volatility on GDP growth.
Journal: SEA – Practical Application of Science
- Issue Year: III/2015
- Issue No: 07
- Page Range: 21-26
- Page Count: 6
- Language: English