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Original scientific paper
https://doi.org/10.17535/crorr.2014.0005

A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries

Saša Žiković ; Faculty of Economics, University of Rijeka
Ivana Tomas Žiković   ORCID icon orcid.org/0000-0002-9156-3479 ; Faculty of Economics, University of Rijeka
Maja Grdinić ; Faculty of Economics, University of Rijeka

Fulltext: english, pdf (208 KB) pages 161-175 downloads: 1.094* cite
APA 6th Edition
Žiković, S., Tomas Žiković, I. & Grdinić, M. (2014). A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries. Croatian Operational Research Review, 5 (2), 161-175. https://doi.org/10.17535/crorr.2014.0005
MLA 8th Edition
Žiković, Saša, et al. "A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries." Croatian Operational Research Review, vol. 5, no. 2, 2014, pp. 161-175. https://doi.org/10.17535/crorr.2014.0005. Accessed 9 Dec. 2019.
Chicago 17th Edition
Žiković, Saša, Ivana Tomas Žiković and Maja Grdinić. "A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries." Croatian Operational Research Review 5, no. 2 (2014): 161-175. https://doi.org/10.17535/crorr.2014.0005
Harvard
Žiković, S., Tomas Žiković, I., and Grdinić, M. (2014). 'A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries', Croatian Operational Research Review, 5(2), pp. 161-175. https://doi.org/10.17535/crorr.2014.0005
Vancouver
Žiković S, Tomas Žiković I, Grdinić M. A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries. Croatian Operational Research Review [Internet]. 2014 [cited 2019 December 09];5(2):161-175. https://doi.org/10.17535/crorr.2014.0005
IEEE
S. Žiković, I. Tomas Žiković and M. Grdinić, "A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries", Croatian Operational Research Review, vol.5, no. 2, pp. 161-175, 2014. [Online]. https://doi.org/10.17535/crorr.2014.0005

Abstracts
The authors analyze the relationship between GDP, imports-coverage ratio (NEX), FDI and gross fixed capital formation (GFC) in selected CEE countries by using an error correction model. The empirical results confirm a positive long-run influence of the imports coverage ratio, FDI and GFC on GDP growth for all of the countries, except Croatia. In the case of Croatia, there is a significant negative feedback between FDI and GDP growth in the long run and a positive one in the short run. By using B. Horvat’s research on this subject, a logical explanation of this sort of paradoxical behavior is suggested. The second uncommon result is the long-run positive relationship between GDP and the imports-coverage ratio. The obtained result speaks in favor of a conservative approach to running a national economy, where the current account and the imports-coverage ratio are taken into account and the economic growth is achieved through slower but stable, internally driven growth.

Keywords
Error Correction Model; FDI, imports-coverage ratio; gross fixed capital; GDP; economic growth; CEE countries

Hrčak ID: 133694

URI
https://hrcak.srce.hr/133694

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