Original scientific paper
https://doi.org/10.1080/1331677X.2019.1710228
Business environment and foreign direct investments: the case of selected European emerging economies
Mladen Vučković
Vito Bobek
Anita Maček
Hazbo Skoko
Tatjana Horvat
Abstract
The globalisation process of the world economy has led to
increase of international capital mobility. In the last two decades,
the level of foreign direct investments (F.D.I.) was significantly
raised and in 2017 was US$1.8 trillion. The question occupying
attention in economic literature is what the main motives and
determinants of F.D.I. in certain countries are. This article aims to
explore what are the linkages between business environment and
inward F.D.I. The research was performed on the sample of five
European emerging economies, located in Central and Eastern
Europe (C.E.E.) – Poland, Slovenia, Bulgaria, Romania and Serbia.
The research compared the main tendencies of F.D.I.s in selected
economies, institutional framework and reforms during transition
process, competitiveness and ease of doing business (E.D.B.). With
the quantitative analysis and ordinary least squares (O.L.S.) regression
authors tried to identify statistical significant linkages
between inward F.D.I. and ease of doing business indicators,
where control variables were G.C.I. pillars (relevant for business
regulation and institutional framework), macroeconomic performances,
market capitalisation and taxation. The results are identified
factors of business environment relevant for attraction of
F.D.I. and provided empirical model for each country respectively
Keywords
F.D.I. inflows; business environment; regulation framework; ease of doing business (E.D.B.); global competitiveness; Central and Eastern European (C.E.E.) countries
Hrčak ID:
254383
URI
Publication date:
9.2.2021.
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