Abstract

Despite the growing interest in foreign direct investments (FDI), substantial uncertainty still exists regarding what stimulates foreign investors to operate in a foreign market and uneven distribution of FDI across countries. Using panel data for 2001 -2012 period, the major determinants of the FDI inflows into the Central and Eastern European Countries are analysed in this study. Strong evidence are found that while EU CR indices, EU and USA real GDP growth rates and global financial crisis have power to explain FDI inflows among all other push factors, labour cost, electricity price, real exchange rate and host CR indices have strong influential on FDI as the most effective pull factors. However, study fails to find any effect of openness, tax rates on commercial profits, USA CR indices, interest rate differentials and host real GDP growth on FDI.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.