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Marjan Petreski |
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''Spatial competition for FDIs in Southeast Europe'' |
( 2025, Vol. 0 No.0 ) |
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This paper investigates the spatial dynamics of foreign direct investment (FDI) in Southeast Europe, focusing on whether FDI inflows in one country complement or compete with those in neighboring economies. Using spatial econometric models and panel data from 2014 to 2023 across seven countries, the analysis reveals strong competitive effects, where FDI in one country often reduces inflows in others. Sectoral specialization and economic fundamentals also shape FDI patterns. The findings corroborate the need for coordinated regional policies to mitigate harmful competition and foster balanced, sustainable investment across the region. |
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Keywords: Spatial Dynamics, Foreign Direct Investment, Southeast Europe |
JEL: F2 - International Factor Movements and International Business: General C3 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions |
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Manuscript Received : Jun 12 2025 | | Manuscript Accepted : Oct 16 2025 |
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