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The Determinants of Foreign Direct Investment: A Regional Analysis with Focus on Belarus

Pärletun, Jana (2008)
Department of Economics
Abstract
I examine the impact of several determinants on foreign direct investments (FDI) by conducting a regional analysis with a particular focus on Belarus. I estimate a panel data model for 16 Central and Eastern European and ex-Soviet Union member countries in a cross-country framework over the 2002 to 2006 time period. The determinants chosen for the empirical model represent macro-economic and trade-related explanatory factors and they have been selected because they are expected to play a key role for attracting FDI into the region of interest. I find strong evidence that the host country market size and access to European common market have a strong influence on the FDI formation for my country sample. However, the estimation results... (More)
I examine the impact of several determinants on foreign direct investments (FDI) by conducting a regional analysis with a particular focus on Belarus. I estimate a panel data model for 16 Central and Eastern European and ex-Soviet Union member countries in a cross-country framework over the 2002 to 2006 time period. The determinants chosen for the empirical model represent macro-economic and trade-related explanatory factors and they have been selected because they are expected to play a key role for attracting FDI into the region of interest. I find strong evidence that the host country market size and access to European common market have a strong influence on the FDI formation for my country sample. However, the estimation results provide no evidence of that corruption, education or trade openness impacts of the investment of foreign multinational in the selected region. The results are used to analyse the current FDI activities in Belarus and other countries in the region. I also provide some concluding policy recommendations. (Less)
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@misc{1336912,
  abstract     = {I examine the impact of several determinants on foreign direct investments (FDI) by conducting a regional analysis with a particular focus on Belarus. I estimate a panel data model for 16 Central and Eastern European and ex-Soviet Union member countries in a cross-country framework over the 2002 to 2006 time period. The determinants chosen for the empirical model represent macro-economic and trade-related explanatory factors and they have been selected because they are expected to play a key role for attracting FDI into the region of interest. I find strong evidence that the host country market size and access to European common market have a strong influence on the FDI formation for my country sample. However, the estimation results provide no evidence of that corruption, education or trade openness impacts of the investment of foreign multinational in the selected region. The results are used to analyse the current FDI activities in Belarus and other countries in the region. I also provide some concluding policy recommendations.},
  author       = {Pärletun, Jana},
  keyword      = {Foreign direct investment,regression analysis,Commonwealth of Independent States,Belarus,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Determinants of Foreign Direct Investment: A Regional Analysis with Focus on Belarus},
  year         = {2008},
}