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| Kamal Upadhyaya, Franklin Mixon, Jr. and Dharmendra Dhakal |
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| ''Foreign direct investment and transition economies: empirical evidence from a panel data estimator'' |
| ( 2007, Vol. 6 No.33 ) |
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| This paper identifies the factors that determine FDI inflows in the former socialist countries of Eastern and Central Europe. In our analysis, FDI inflows are modeled as a function of the market size (i.e., real GDP), inflation, the current account balance, the real exchange rate, openness and government regulation for the host country. Using data from 1995 to 2004, a panel data estimator suggests that the real exchange rate, openness of the economy and deregulation are the primary factors determining FDI inflows in these countries. |
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| Keywords: |
JEL: F2 - International Factor Movements and International Business: General
F2 - International Factor Movements and International Business: General |
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| Manuscript Received : Jun 06 2007 | | Manuscript Accepted : Aug 21 2007 |
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