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FDI’s Impact on Economic Growth: Czech Republic and Lithuania

Stasiute, Vilma LU (2010) EKHR23 20101
Department of Economic History
Abstract (Swedish)
This paper examines the dynamics between foreign direct investment and economic growth. As scientific literature fails to provide common conclusion about FDI’s effect on host economy, investigation of single country can reveal the new aspects. Moreover, the contribution to literature of transition economies is made by choosing Czech Republic and Lithuania. Econometric analysis is employed in order to test the hypotheses of interaction between total output, foreign direct investment and several other factors. The conclusions drawn from this study are manifold. Lithuanian case supports the widespread belief in positive contribution of foreign direct investment to economic growth. Czech Republic, on the other hand, provides opposite evidence,... (More)
This paper examines the dynamics between foreign direct investment and economic growth. As scientific literature fails to provide common conclusion about FDI’s effect on host economy, investigation of single country can reveal the new aspects. Moreover, the contribution to literature of transition economies is made by choosing Czech Republic and Lithuania. Econometric analysis is employed in order to test the hypotheses of interaction between total output, foreign direct investment and several other factors. The conclusions drawn from this study are manifold. Lithuanian case supports the widespread belief in positive contribution of foreign direct investment to economic growth. Czech Republic, on the other hand, provides opposite evidence, which is more common among transition economies. In general, country’s particular characteristics are found to be crucial in reaping the benefits of foreign direct investment. Finally, individual country approach suggests a wide scope for further investigation, as common cross-country panel studies tends to miss the specific effects on certain economies. (Less)
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author
Stasiute, Vilma LU
supervisor
organization
course
EKHR23 20101
year
type
H2 - Master's Degree (Two Years)
subject
keywords
FDI, investment, Czech Republic, economic growth, Lithuania
language
English
id
1666450
date added to LUP
2010-09-09 11:21:32
date last changed
2010-09-09 11:21:32
@misc{1666450,
  abstract     = {This paper examines the dynamics between foreign direct investment and economic growth. As scientific literature fails to provide common conclusion about FDI’s effect on host economy, investigation of single country can reveal the new aspects. Moreover, the contribution to literature of transition economies is made by choosing Czech Republic and Lithuania. Econometric analysis is employed in order to test the hypotheses of interaction between total output, foreign direct investment and several other factors. The conclusions drawn from this study are manifold. Lithuanian case supports the widespread belief in positive contribution of foreign direct investment to economic growth. Czech Republic, on the other hand, provides opposite evidence, which is more common among transition economies. In general, country’s particular characteristics are found to be crucial in reaping the benefits of foreign direct investment. Finally, individual country approach suggests a wide scope for further investigation, as common cross-country panel studies tends to miss the specific effects on certain economies.},
  author       = {Stasiute, Vilma},
  keyword      = {FDI,investment,Czech Republic,economic growth,Lithuania},
  language     = {eng},
  note         = {Student Paper},
  title        = {FDI’s Impact on Economic Growth: Czech Republic and Lithuania},
  year         = {2010},
}