Does Foreign Direct Investment and Trade Openness Support Economic Development? Evidence from Four European Countries

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F23%3A43924757" target="_blank" >RIV/62156489:43110/23:43924757 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.47743/saeb-2023-0033" target="_blank" >https://doi.org/10.47743/saeb-2023-0033</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.47743/saeb-2023-0033" target="_blank" >10.47743/saeb-2023-0033</a>

Result language

angličtina

Original language name

Does Foreign Direct Investment and Trade Openness Support Economic Development? Evidence from Four European Countries

Original language description

The European Union (EU) as a political and economic union has provided many benefits to its member states through the single market and common tariffs that serves as a platform for internal trade and international trade with third-world countries. The study aimed to investigate the effect of foreign direct investment (FDI) and trade openness on economic development in four selected countries including the Czech Republic, Estonia, Lithuania, and Slovakia using panel data from 1995 to 2021. The data was obtained from the World Bank and analyzed through econometric methods such as pooled model, fixed effect model, random effect model, and the dynamic panel model. The between transformation results using the pooled ordinary least squares indicated that the Czech Republic had the highest intercept coefficient, followed by Slovakia, Lithuania, and Estonia, respectively. The panel specification test discovered that the pooled model was inadequate, and the random effect model is the most appropriate to be used. The results from the random and fixed effects models displayed that FDI and trade openness have a positive impact on economic growth in these countries. Additionally, the dynamic panel outcome proved a positive effect of FDI and trade openness. The study recommends that governments in these countries improve their business environment to attract more FDI and trade relations with other countries.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Scientific Annals of Economics and Business

ISSN

2501-1960

e-ISSN

2501-3165

Volume of the periodical

70

Issue of the periodical within the volume

4

Country of publishing house

RO - ROMANIA

Number of pages

17

Pages from-to

585-601

UT code for WoS article

001130801200006

EID of the result in the Scopus database

2-s2.0-85186889072