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Economic Trends and Economic Policy, Vol. 11 No. 87, 2001.

Original scientific paper

PANEL ANALYSIS OF FDI DETERMINANTS IN EUROPEAN TRANSITION COUNTRIES

Ante Babić
Tihomir Stučka

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Abstract

This paper focuses on defining determinants of FDI flows from the perspective of a host country by creating a balanced panel of 12 countries from the CEEC and Baltic region. We find FDI flows to move, on average, to stable exchange rate environments, countries with low sovereign risk, and countries with high GDP per capita. In addition, we find also that agglomeration of FDI seems to be an important determinant of current FDI flows. We do not find any support in the data for trade openness to be neither a robust nor a significant explanatory variable of current FDI flows.

Keywords

Hrčak ID:

18800

URI

https://hrcak.srce.hr/18800

Publication date:

15.7.2001.

Article data in other languages: croatian

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