Original scientific paper
FDI and Macroeconomic Policies in Central and Eastern European Countries
Charles L. Vehorn
; Economics Department, Radford University, USA
Abstract
Central and Eastern European countries have turned to external sources, foreign direct investment (FDI), in the hope of enhancing their economic growth. Has it worked? The purpose of this paper is to estimate the effects of FDI and domestic investment on economic growth, along with the effects of fi scal and monetary policy. A production function approach is employed with panel data over the 1992-2007 period, which extends the time period relative to other studies. The results, using various estimating techniques, indicate that both FDI and domestic investment are statistically signifi cant determinants of economic growth; as well as prudent fi scal and monetary policy.
Keywords
economic growth; production function approach; foreign direct investment; panel data; fi xed effects
Hrčak ID:
78729
URI
Publication date:
1.5.2011.
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