The Determinants of FDI Sectoral Structure in the Central and East European EU Countries

Pečarić, Mario; Kusanović, Tino; Jakovac, Pavle

doi:10.3390/economies9020066

Cited by 15 publications

(9 citation statements)

References 17 publications

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“…In Columns 4 and 5 of Table 1, a 1 percentage point increase in total FDI flows lead, respectively, to a 0.436% and 0.693% increase in manufacturing and services growth. These findings provide prima facie evidence that total FDI is a significant contributor to economic growth in the MENA region, both aggregately (real GDP growth) and disaggregate (manufacturing and services growth)—a finding that is consistent with the literature (Haini & Tan, 2022; Kannen, 2020; Pečarić et al, 2021; Vu & Noy, 2009).…”

Section: Resultssupporting

confidence: 87%

Spillover effects of FDI inflows on output growth: An analysis of aggregate and disaggregated FDI inflows of 13 MENA economies

Bergougui

Murshed

2023

Australian Economic Papers

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This paper examines the effect of foreign direct investment (FDI) inflows on overall growth, as well as its sector‐specific spillovers in the Middle Eastern and North African region during the period from 2000 to 2020. Our major innovation is our ability to disaggregate FDI into primary, secondary and tertiary and examine their individual impact on growth, as well as their sector‐specific spillovers by using dynamic panel GMM methodology. We find prima facie evidence that total FDI significantly stimulates growth. However, when we turn to the disaggregated FDI data, primary sector FDI adversely affects the gross domestic product (GDP) growth in the service sector and overall GDP growth. On the other hand, secondary FDI has a ‘double‐edged’ effect, benefiting its own sector (the service sector's GDP growth), but not other sectors. In contrast, service sector FDI stimulates GDP growth in mining, manufacturing and service sectors, thereby enhancing overall economic growth. Our findings have important policy implications regarding the incentives provided by governments to encourage FDI, which need to be fine‐tuned to attract certain types of FDI (tertiary), with less focus on the primary sector

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Section: Resultssupporting

confidence: 87%

Spillover effects of FDI inflows on output growth: An analysis of aggregate and disaggregated FDI inflows of 13 MENA economies

Bergougui

Murshed

2023

Australian Economic Papers

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“…Macroeconomic stability will be achieved if there is a balance between domestic demand and spending as well as between savings and investment [48]. Thus, changing the structure of the domestic economy towards industrial and investment policies is the best way to attract efficient foreign direct investment (FDI) in development [49]. Indicators by which to measure economic stability include economic growth, inflation, exchange rates, and interest rates.…”

Section: Stability and Productivity Of Economic Enterprisesmentioning

confidence: 99%

Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic

Surya

Hernita²,

Salim

et al. 2022

Sustainability

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The COVID-19 pandemic, apart from having an impact on public health, has also caused the stagnation of travel-bureau businesses and the management of small and medium enterprises (SMEs) in the tourism sector. This study aims to analyze the COVID-19 pandemic as a determinant of travel-business stagnation and turbulence in small and medium enterprises (SMEs), the influence of human resources, business development, and product marketing on the productivity of the travel and SME business, the direct and indirect effects of business innovation, economic digitization, and the use of technology on business stability and economic-business sustainability. This study uses an explanatory sequential qualitative–quantitative approach. Data were obtained through observation, in-depth interviews, surveys, and documentation. This study is focused on assessing the efforts made by travel-agency-business actors and SMEs in responding and adapting to changes in the business environment, both internally and externally. Human resources, business development, and product marketing together affect the productivity of travel agents and SMEs with a coefficient of determination of 95.84%. Furthermore, business innovation, economic digitization, and the use of technology simultaneously affect business stability with a coefficient of determination of 63.8%, and business stability affects the sustainability of travel and SMEs with a coefficient of determination of 67.6%. This study recommends a strategy for travel-agency-business sustainability and the stability of SMEs’ economic-business management towards increasing economic growth in the North Toraja Regency, South Sulawesi, Indonesia.

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“…There is evidence that FDI inflows in the manufacturing sector has higher effects on productivity development than FDI inflows in the real estate sector, the financial sector, the retail sector or the service sector in general. In addition, investment in the service sector is less export-oriented (Alfaro and Charlton 2007;Mencinger 2003;Peărić et al 2021). This is highly plausible.…”

Section: Global Value Chains and Industrializationmentioning

confidence: 99%

Global Value Chains—A Panacea for Development?

Dünhaupt

Herr

2022

Economic and Social Upgrading in Global Value Chains

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In the last decades in particular, national governments as well as development agencies and international organizations have increasingly turned to participation in global value chains (GVCs) as a development strategy. However, whether the positive development effects of integration are large enough to warrant trade liberalization cannot be answered in a straightforward manner. In this article, we show how development recommendations by international institutions and Western governments have changed since World War II and now ultimately recommend integration into GVCs.Deregulation and liberalization of international trade and capital flows have fueled two opposing trends, which also affect GVCs: on the one hand, there is increasing concentration at the corporate level. On the other hand, globalization has resulted in more countries participating in international trade including via industrial production. Both developments have led to multinationals being able to expand their rent-seeking opportunities while also reducing production costs, especially for simple manufactured goods. Today, it is no longer sufficient for a country to industrialize in order to catch up with the rest of the world, as the prices for industrial goods and quality of productions have fallen tremendously in some cases, at least in comparison to developed countries. Integration into GVCs seems to provide only minimal macroeconomic benefits beyond the positive effects for individual companies and sectors. Industrial policy therefore seems indispensable for catch-up development.

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The Determinants of FDI Sectoral Structure in the Central and East European EU Countries

Cited by 15 publications

References 17 publications

Spillover effects of FDI inflows on output growth: An analysis of aggregate and disaggregated FDI inflows of 13 MENA economies

Spillover effects of FDI inflows on output growth: An analysis of aggregate and disaggregated FDI inflows of 13 MENA economies

Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic

Global Value Chains—A Panacea for Development?

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