FDI Determinants in the European Union: Empirical Application

The purpose of this paper is to verify and estimate, besides gravity factors, the individual country specific determinants in influencing FDI inflows to the selected countries. More than standard factors, we revile additional factors, which could explain the investment in the EU. In this context, we...

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Main Author: Alena Dorakh
Format: Article
Language:English
Published: Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house 2020-06-01
Series:Scientific Annals of Economics and Business
Subjects:
Online Access:http://saeb.feaa.uaic.ro/index.php/saeb/article/view/779
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author Alena Dorakh
author_facet Alena Dorakh
author_sort Alena Dorakh
collection DOAJ
description The purpose of this paper is to verify and estimate, besides gravity factors, the individual country specific determinants in influencing FDI inflows to the selected countries. More than standard factors, we revile additional factors, which could explain the investment in the EU. In this context, we take into account the neighboring effects as an important motive for FDI inflows last time. Our findings verify that efficiency-seeking and more complex form of the FDI determinants is more pronounced strategy now in the new EU member states than market-seeking FDI that is more relevant for the whole EU. Moreover, in addition to the existing literature, we argue that a variation in FDI determined by the EU-2004 enlargement started earlier than official date and remains its impact. Supposedly, a significant surrounding market potential could be for the new EU member states an evidence of the complex vertical FDI determinant today.
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spelling doaj.art-b0686f73acec49f8a9e3599f0208350a2022-12-21T20:45:10ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652501-31652020-06-01672220233170FDI Determinants in the European Union: Empirical ApplicationAlena Dorakh0University of Warsaw (Poland) Trier University (Germany)The purpose of this paper is to verify and estimate, besides gravity factors, the individual country specific determinants in influencing FDI inflows to the selected countries. More than standard factors, we revile additional factors, which could explain the investment in the EU. In this context, we take into account the neighboring effects as an important motive for FDI inflows last time. Our findings verify that efficiency-seeking and more complex form of the FDI determinants is more pronounced strategy now in the new EU member states than market-seeking FDI that is more relevant for the whole EU. Moreover, in addition to the existing literature, we argue that a variation in FDI determined by the EU-2004 enlargement started earlier than official date and remains its impact. Supposedly, a significant surrounding market potential could be for the new EU member states an evidence of the complex vertical FDI determinant today.http://saeb.feaa.uaic.ro/index.php/saeb/article/view/779foreign direct investment, the new eu member states, country-specific determinants of fdi, panel data, fixed effects, neighboring effects.
spellingShingle Alena Dorakh
FDI Determinants in the European Union: Empirical Application
Scientific Annals of Economics and Business
foreign direct investment, the new eu member states, country-specific determinants of fdi, panel data, fixed effects, neighboring effects.
title FDI Determinants in the European Union: Empirical Application
title_full FDI Determinants in the European Union: Empirical Application
title_fullStr FDI Determinants in the European Union: Empirical Application
title_full_unstemmed FDI Determinants in the European Union: Empirical Application
title_short FDI Determinants in the European Union: Empirical Application
title_sort fdi determinants in the european union empirical application
topic foreign direct investment, the new eu member states, country-specific determinants of fdi, panel data, fixed effects, neighboring effects.
url http://saeb.feaa.uaic.ro/index.php/saeb/article/view/779
work_keys_str_mv AT alenadorakh fdideterminantsintheeuropeanunionempiricalapplication