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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

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

Název periodika

Scientific Annals of Economics and Business

ISSN

2501-1960

e-ISSN

2501-3165

Svazek periodika

70

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

RO - Rumunsko

Počet stran výsledku

17

Strana od-do

585-601

Kód UT WoS článku

001130801200006

EID výsledku v databázi Scopus

2-s2.0-85186889072