Fiscal Policy and Foreign Direct Investment: Evidence from some Emerging EU Economies

Göndör, Mihaela; Nistor, Paula

doi:10.1016/j.sbspro.2012.09.1108

Cited by 16 publications

(10 citation statements)

References 23 publications

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“…According to their study, the incentives are effective in attracting new FDI to the countries. Göndör & Nistor (2012) pointed out that the fiscal policy is a major factor influencing Foreign Direct Investment.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European transition economies

Haliti

Merovci

Hetemi

et al. 2020

ECO

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The objective (aim) of this paper is to explore the impact of the Ease of Doing Business Indicators on FDI on transition economies in Europe. Authors have used the dynamic panel methodology, by using three methods: Pooled Ordinary Least Square (POLS), Fixed Effect (FE), and Two Step-System Generalised Method of Moments (GMM) estimation techniques. By referring to the GMM technique, it can be seen that variables such as: Starting a Business, Registering property, Getting electricity and Resolving insolvency have a positive and significant impact in attracting FDI in 16 European transition countries, while variables as: Dealing with construction permits, Getting credit, Paying taxes, Protecting minority investors, have shown negative impact, whereas Trading Across Border and Enforcing contracts have not shown any impact on attracting FDIs in European transition countries. This paper contributes to the enrichment of existing literature in this field by using these three methods.

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Section: Literature Reviewmentioning

confidence: 99%

The impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European transition economies

Haliti

Merovci

Hetemi

et al. 2020

ECO

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“…The movement of capital inside and outside the country, investment policy attracts significant attention of politicians and researchers in developed and emerging countries (Göndör & Nistor, 2012). Public investment belongs to the category of expenditures most directly related to the acceleration of economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Investment policy of the state as a tool for economic growth of the country

Makohon

Radionov²,

Adamenko

2020

Problems and Perspectives in Management

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The investment policy of the state is an important tool for diversifying the economy. This paper analyzes the share of capital investment in GDP, the index of fixed capital investment for 2015–2019, and assesses the investment policy determinants of the state of developed countries and emerging countries. Correlation-regression analysis methods were used to determine the relationship between real GDP, the share of industrial output in GDP, and the index of fixed capital investment in countries with economies in transformation. As a result, it was determined that in the vast majority of countries studied, the increase in investment in fixed assets contributes to the acceleration of economic growth, and the level of economic growth determines the investment potential of countries; that the heterogeneity of the impact of investment on the level of economic growth in countries with transformational economies is due to their raw material orientation, insufficient level of validity and predictability of the implemented investment policy of the state; the state’s investment policy is an important tool for ensuring macroeconomic stability and stimulating economic growth in a recession. Using the data of the panels for the period from 2015 to 2019, it is substantiated that the creation of conditions for macroeconomic balance will increase business activity of enterprises, which is the result of purposeful influence of state investment policy on economic processes by ensuring quality transformation and innovation of the national economy. The obtained results show that the level of influence of the state investment policy on the level of economic growth varies significantly depending on the level of development of financial institutions in the country and the infrastructure of the financial market.

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“…As their data indicate and as the statistical test has proved, the incentives are effective in attracting new FDI to the countries. Also from their research conducted for some Emerging EU Economies, Göndör & Nistor (2012) pointed out that fiscal policy is a major factor influencing foreign direct investment.…”

Section: Many Scholars Have Conducted Research On Various Factors Of mentioning

confidence: 99%

“…Profit tax rate reveals positive and significant effect on FDI flows in European transition countries. These states have taken incentives (tax reliefs), (some of them examined by Göndör & Nistor (2012), Sedmihradsky & Klazar, (2002)) which have impacted that, even though profit tax had grown over the years to these countries. At the same time foreign direct investment (FDI) have grown as result of these tax relief applied from these countries over this time period.…”

Section: Articlesmentioning

confidence: 99%

The Impact of the Investment Environment on Foreign Direct Investment (FDI) in the European Transition Economies

2020

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The main objective of this paper is to investigate the impact of the investment environment on FDI in transition economies in Europe, through the usage of dynamic panel methodology, due to the persistence of the endogeneity issues. Further, three main factors have been determined affecting the FDI in 15 developing countries through the time span 2009-2016 as Control of Corruption, Political Stability and Absence of Violence/Terrorism and Distance to frontier score (Doing Business) having positive and significant effect on attracting FDI in these transition countries. Also as pull factors are used GDP per capita, profit tax rate showing positive and significant effect on FDI flows, while unemployment rate was positive but does not have a significant role in the attraction of FDI flows in European transition countries.In addition, to our best knowledge this paper is among the first that attempts to investigate this relationship in this set of countries by employing the dynamic panel methodology using differenced GMM model as well as employing Distance to frontier score (Doing Business) as one of investment environment factors that impact FDI flows for this set of 15 countries. Furthermore, such findings will contribute to the existing literature by using these instruments to measure their impact on FDI attractiveness on European transition economies.

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Fiscal Policy and Foreign Direct Investment: Evidence from some Emerging EU Economies

Cited by 16 publications

References 23 publications

The impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European transition economies

The impact of the Ease Doing Business Indicators on Foreign Direct Investment in the European transition economies

Investment policy of the state as a tool for economic growth of the country

The Impact of the Investment Environment on Foreign Direct Investment (FDI) in the European Transition Economies

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