CEU Electronic Theses and Dissertations, 2013
| Author | Stanay, Tomas |
|---|---|
| Title | Determinants of the flows of foreign direct investments from Western to Eastern European countries |
| Summary | I investigate which factors determine the flows of foreign direct investments from Western to Eastern European countries. The analysis is based upon the gravity model framework which argues that the choice of the foreign investment depends on the size of the donor and the recipient country; distance between the two countries as well as other control variables which determine bilateral flows of investments. I distinguish between general and transition-specific determinants of foreign investment flows. As general determinants of foreign investment flows I consider unit labor cost and corporate taxes. As transition-specific determinants that can explain different volumes of investment flows attracted by transition countries I consider: infrastructure, level of corruption, method of privatization; state of the competition policy, corporate governance and banking reforms of the recipient country. To perform the econometric analysis I am using random effects estimator and Hausman-Taylor estimator. The results of the analysis show that the privatization process and the state of banking reforms are determinants that have a statistically and economically significant effect on the capacity of transitional economies to attract investments from Western European countries. |
| Supervisor | Campolmi Alessia |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2013/stanay_tomas.pdf |
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