This paper examines the importance of Foreign Direct Investment (FDI) on economic growth. Using a panel data set for 27 transition economies over the period 1991-2004 as well as the methodology of panel cointegration and causality tests, the empirical findings show that FDI does exhibit a...

Foreign direct investment is considered to be a very important component of every nation's attempt towards economic development. It contributes directly to the growth, on this background, the main aim of this paper is to investigate the determinants of Foreign Direct Investment in 29 Emerging...

This paper investigates the importance of factor endowment vis-à-vis institutions in explaining the locational choice of foreign investors during the 1990s.Using dynamic panel estimation on data for transition economies, we find that low labour costs, bureaucratic efficiency ("institutions"),...

To enhance the inflow of foreign direct investment (FDI) and ultimately to increase the economic growth, the countries have implemented a variety of financial and trade liberalization policies in the last three decades. Pakistan also initiated such type of policies. This study makes an analysis...

This paper investigates the importance of factor endowment vis-à-vis institutions in explaining the locational choice of foreign investors during the 1990s. Using dynamic panel estimation on data for transition economies, we find that low labour costs, bureaucratic efficiency ("institutions"),...

Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in Southeastern Europe - a region not comprehensively covered before in econometric studies - but host-country policies also matter. Key are policies that affect relative unit labor costs, the corporate tax burden,...

Although the theoretical literature has identified various sizeable benefits from foreign direct investment inflows (FDI), the empirical literature has been unable to establish a positive and significant impact of FDI on the rates of economic growth of host countries. One reason for this...

This paper examines the importance of agglomeration economies and institutions vis-a-vis initial conditions and factor endowments in explaining the locational choice of foreign investors. Using a unique panel data set for 25 transition economies between 1990 and 1998, we find that the main...

Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in transition economies, including in Southeastern Europe—a region not comprehensively covered before in econometric studies—but host country policies also matter. Key are policies that affect unit labor costs,...

This paper examines the role of FDI in promoting growth in 25 Central and Southern Eastern Europe (CSEE) using a dynamic panel approach that includes lags of involved variables to mitigate the problem of serial correlation. It adopts also a ‘general-to-specific' approach to deal with the...