The Impact of Macroeconomic Indicators and FDI Inflows on the Economic Growth

Abstract

The focus of this paper is to test the relevance of chosen mac­roeconomic indicators and FDI net inflows on the economic growth stimu­lation in the sample of Emerging European Economies and sub-sample of Visegrad States in the period 1997-2017. This empirical research comprises from analysis of robust panel data modes on the total sample level and in the two analyzed sub-periods (before and after the Global Financial Crisis – GFC) with the use of a dummy variable for the Visegrad States. The results of robust estimations indicate that greater FDI net inflows are a relevant factor of economic growth on the total sample level and in the Visegrad States af­ter the GFC. Based on the empirical findings, the authors suggest that poli­cymakers in the Western Balkans should introduce the necessary promotion measures in order to attract greater FDI inflows and boost the economic de­velopment level.