This chapter investigates the impact of FDI on the GDP, in three groups of European countries; the European Union countries (EU-28), the Euro Area countries (EA-19), and the Eastern European Countries (EEC). An empirical model for this correlation was used to calculate the level of this...

Growth empirics with institutional measures is performed for 25 transition countries overthe period 1990-95. Estimation results suggest that (particularly state) institutions aresignificant for growth and, especially, foreign direct investment (FDI), the latter in turnbeing important for the...