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Original scientific paper

https://doi.org/10.1080/1331677X.2018.1456357

The role of Chinese investments in the bilateral exports of new E.U. member states and Western Balkan countries

D. Jacimovic ; Faculty of Economics, University of Montenegro, Podgorica, Montenegro
R. Dragutinović Mitrović ; Faculty of Economics, University of Belgrade, Beograd, Serbia
P. Bjelić ; Faculty of Economics, University of Belgrade, Beograd, Serbia
K. Tianping ; Chinese Academy of Social Sciences, Institute of European Studies, Beijing, China
M. Rajkovic ; Faculty of Economics, University of Montenegro, Podgorica, Montenegro


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Abstract

This paper explores the economic relations between China and
new E.U. member states and Western Balkan countries. China is an
important trade partner for these countries, but in recent years the
cooperation has been extended to include Chinese foreign direct
investments (F.D.I.) inward investment. Using the Poisson pseudomaximum
likelihood (P.P.M.L.) method to estimate a gravity model of
bilateral trade, this study analysed the export flows of these countries
as a function of total inward F.D.I. and Chinese F.D.I. as well. The results
imply that F.D.I. inflows from China significantly increase the bilateral
exports of the investigated countries, where F.D.I. has a greater impact
on the exports of new E.U. member states than on Western Balkan
countries.

Keywords

Trade and F.D.I.; Chinese F.D.I.; C.E.E.C. export; China and C.E.E.C. relations; panel data

Hrčak ID:

206100

URI

https://hrcak.srce.hr/206100

Publication date:

3.12.2018.

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