Does Foreign Direct Investment and Trade Openness Support Economic Development? Evidence from Four European Countries

被引:0
|
作者
Yeboah, Evans [1 ]
机构
[1] Mendel Univ Brno, Fac Business & Econ, Dept Business Econ, Brno, Czech Republic
关键词
FDI; GDP; European Union; trade openness; single market; PANEL-DATA; GROWTH; IMPACT; FDI;
D O I
10.47743/saeb-2023-0033
中图分类号
F [经济];
学科分类号
02 ;
摘要
The European Union (EU) as a political and economic union has provided many benefits to its member states through the single market and common tariffs that serves as a platform for internal trade and international trade with third-world countries. The study aimed to investigate the effect of foreign direct investment (FDI) and trade openness on economic development in four selected countries including the Czech Republic, Estonia, Lithuania, and Slovakia using panel data from 1995 to 2021. The data was obtained from the World Bank and analyzed through econometric methods such as pooled model, fixed effect model, random effect model, and the dynamic panel model. The between transformation results using the pooled ordinary least squares indicated that the Czech Republic had the highest intercept coefficient, followed by Slovakia, Lithuania, and Estonia, respectively. The panel specification test discovered that the pooled model was inadequate, and the random effect model is the most appropriate to be used. The results from the random and fixed effects models displayed that FDI and trade openness have a positive impact on economic growth in these countries. Additionally, the dynamic panel outcome proved a positive effect of FDI and trade openness. The study recommends that governments in these countries improve their business environment to attract more FDI and trade relations with other countries.
引用
收藏
页码:585 / 601
页数:17
相关论文
共 50 条
  • [41] Does Foreign Direct Investment Promote Economic Growth? Evidence from Turkey
    Gunaydin, Ihsan
    Tatoglu, Ekrem
    [J]. MULTINATIONAL BUSINESS REVIEW, 2005, 13 (02) : 89 - +
  • [42] Foreign direct investment and its impact on the economic development of countries
    Zapletal, Jiri
    [J]. PROCEEDINGS FROM THE 5TH INTERNATIONAL CONFERENCE: ECONOMIC POLICY IN THE NEW EU MEMBER COUNTRIES, 2005, : 586 - 593
  • [43] The heterogeneous competitive effects of trade and foreign direct investment: Firm-level evidence for European countries
    Weche, John P.
    [J]. WORLD ECONOMY, 2018, 41 (03): : 801 - 830
  • [44] RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS, OPENNESS AND ECONOMIC GROWTH: EVIDENCE FROM DEVELOPING COUNTRIES
    Kurtes, Sinisa
    Amidzic, Srdan
    Kurusic, Drago
    [J]. CASOPIS ZA EKONOMIJU I TRZISNE KOMUNIKACIJE, 2022, 12 (02): : 434 - 449
  • [45] EFFECTS OF SECTORAL STRUCTURE OF FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT: THE CASE OF EUROPEAN DEVELOPING COUNTRIES
    Despotovic, Danijela
    Dimitrijevic, Milos
    Savicevic, Marko
    [J]. SERBIAN JOURNAL OF MANAGEMENT, 2024, 19 (01) : 149 - 165
  • [46] Asymmetric effects of foreign direct investment and trade openness on economic growth in Somalia: Evidence from a non-linear ARDL approach
    Abdi, Abdikafi Hassan
    Zaidi, Mohd Azlan Shah
    Halane, Dhaqane Roble
    Warsame, Abdimalik Ali
    [J]. COGENT ECONOMICS & FINANCE, 2024, 12 (01):
  • [47] Foreign direct investment, trade integration and the home bias: evidence from the European Union
    Valeriano Martínez-San Román
    Marta Bengoa
    Blanca Sánchez-Robles
    [J]. Empirical Economics, 2016, 50 : 197 - 229
  • [48] Foreign direct investment, trade integration and the home bias: evidence from the European Union
    Martinez-San Roman, Valeriano
    Bengoa, Marta
    Sanchez-Robles, Blanca
    [J]. EMPIRICAL ECONOMICS, 2016, 50 (01) : 197 - 229
  • [49] The Impact of Foreign Direct Investment from Major Source Countries on Turkish Trade with the European Union
    Cetin, Rahmi
    Taban, Sami
    [J]. SOUTH EAST EUROPEAN JOURNAL OF ECONOMICS AND BUSINESS, 2009, 4 (02) : 45 - 55
  • [50] Foreign Direct Investment and Trade Openness: The Case of Developing Economies
    Panagiotis G. Liargovas
    Konstantinos S. Skandalis
    [J]. Social Indicators Research, 2012, 106 : 323 - 331