publication . Research . Article . Other literature type . Preprint . 2004

Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis

Kai Carstensen; Farid Toubal;
Open Access English
  • Published: 28 Jan 2004
  • Publisher: Kiel: Kiel Institute for World Economics (IfW)
International audience; This paper uses dynamic panel data methods to examine the determinants of foreign direct investment (FDI) into Central and Eastern European countries (CEECs). Our empirical model shows that the traditional determinants, such as market potential, low relative unit labor costs, a skilled workforce and relative endowments, have significant and plausible effects. In addition, transition-specific factors, such as the level and method of privatization and the country risk, play important roles in determining the flows of FDI into the CEECs and help to explain the differing attractiveness of the individual countries to foreign investors.
free text keywords: F21, F23, P33, Transition economies, FDI, Panel estimation, Direktinvestition, Standortfaktor, Schätzung, Osteuropa, Transition economies, FDI, Panel estimation, ddc:330, F21; F23; P33, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Economics and Econometrics, Panel analysis, Market potential, Workforce, Economics, Country risk, Foreign direct investment, International economics, Panel data, Attractiveness, Microeconomics, jel:F21, jel:F23, jel:P33
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publication . Research . Article . Other literature type . Preprint . 2004

Foreign Direct Investment in Central and Eastern European Countries: A Dynamic Panel Analysis

Kai Carstensen; Farid Toubal;