Business environment and foreign direct investments – the case of European emerging economies

Mladen Vuckovic, Vito Bobek, Anita Macek, Hazbo Skoko, Tatjana Horvat

Research output: Contribution to journalArticle

6 Downloads (Pure)

Abstract

Globalization process of the world economy has led to increase of international capital mobility. In recent two decades, the level of foreign direct investments (FDI) is significantly raised and in 2017 was 1.8 trillion US dollars. The question that is occupying attention in economic literature is what are the main motives and determinants of FDI in certain countries. This paper aims to explore what are the linkages between business environment and inward FDI. The research was performed on the sample of five European emerging economies, located in Central and Eastern Europe – Poland, Slovenia, Bulgaria, Romania and Serbia. The research compared the main tendencies of FDIs in selected economies, institutional framework and reforms during transition process, competitiveness and ease of doing business. With the quantitative analysis and OLS regression authors tried to identify statistical significant linkages between inward FDI and ease of doing business indicators, where control variables were GCI pillars (relevant for business regulation and institutional framework), macroeconomic performances, market capitalization and taxation. The results are identified factors of business environment relevant for attraction of FDI and provided empirical model for each country respectively.
Original languageEnglish
Number of pages28
JournalEconomic Research-Ekonomska Istrazivanja
Publication statusAccepted/In press - 2020

Fingerprint

Business environment
Emerging economies
Foreign direct investment
Institutional framework
Linkage
Central Europe
Macroeconomic performance
Market capitalization
Factors
Transition process
Romania
International capital mobility
Empirical model
Institutional reform
Globalization processes
Slovenia
Eastern Europe
Control variable
Competitiveness
Bulgaria

Cite this

@article{6fdd9bacf8b2446880c41d21bee03bd3,
title = "Business environment and foreign direct investments – the case of European emerging economies",
abstract = "Globalization process of the world economy has led to increase of international capital mobility. In recent two decades, the level of foreign direct investments (FDI) is significantly raised and in 2017 was 1.8 trillion US dollars. The question that is occupying attention in economic literature is what are the main motives and determinants of FDI in certain countries. This paper aims to explore what are the linkages between business environment and inward FDI. The research was performed on the sample of five European emerging economies, located in Central and Eastern Europe – Poland, Slovenia, Bulgaria, Romania and Serbia. The research compared the main tendencies of FDIs in selected economies, institutional framework and reforms during transition process, competitiveness and ease of doing business. With the quantitative analysis and OLS regression authors tried to identify statistical significant linkages between inward FDI and ease of doing business indicators, where control variables were GCI pillars (relevant for business regulation and institutional framework), macroeconomic performances, market capitalization and taxation. The results are identified factors of business environment relevant for attraction of FDI and provided empirical model for each country respectively.",
author = "Mladen Vuckovic and Vito Bobek and Anita Macek and Hazbo Skoko and Tatjana Horvat",
year = "2020",
language = "English",
journal = "Economic Research-Ekonomska Istrazivanja",
issn = "1331-677X",
publisher = "Faculty of Economics and Tourism 'Dr. Mijo Mirkovic'",

}

Business environment and foreign direct investments – the case of European emerging economies. / Vuckovic, Mladen; Bobek, Vito; Macek, Anita; Skoko, Hazbo; Horvat, Tatjana.

In: Economic Research-Ekonomska Istrazivanja, 2020.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Business environment and foreign direct investments – the case of European emerging economies

AU - Vuckovic, Mladen

AU - Bobek, Vito

AU - Macek, Anita

AU - Skoko, Hazbo

AU - Horvat, Tatjana

PY - 2020

Y1 - 2020

N2 - Globalization process of the world economy has led to increase of international capital mobility. In recent two decades, the level of foreign direct investments (FDI) is significantly raised and in 2017 was 1.8 trillion US dollars. The question that is occupying attention in economic literature is what are the main motives and determinants of FDI in certain countries. This paper aims to explore what are the linkages between business environment and inward FDI. The research was performed on the sample of five European emerging economies, located in Central and Eastern Europe – Poland, Slovenia, Bulgaria, Romania and Serbia. The research compared the main tendencies of FDIs in selected economies, institutional framework and reforms during transition process, competitiveness and ease of doing business. With the quantitative analysis and OLS regression authors tried to identify statistical significant linkages between inward FDI and ease of doing business indicators, where control variables were GCI pillars (relevant for business regulation and institutional framework), macroeconomic performances, market capitalization and taxation. The results are identified factors of business environment relevant for attraction of FDI and provided empirical model for each country respectively.

AB - Globalization process of the world economy has led to increase of international capital mobility. In recent two decades, the level of foreign direct investments (FDI) is significantly raised and in 2017 was 1.8 trillion US dollars. The question that is occupying attention in economic literature is what are the main motives and determinants of FDI in certain countries. This paper aims to explore what are the linkages between business environment and inward FDI. The research was performed on the sample of five European emerging economies, located in Central and Eastern Europe – Poland, Slovenia, Bulgaria, Romania and Serbia. The research compared the main tendencies of FDIs in selected economies, institutional framework and reforms during transition process, competitiveness and ease of doing business. With the quantitative analysis and OLS regression authors tried to identify statistical significant linkages between inward FDI and ease of doing business indicators, where control variables were GCI pillars (relevant for business regulation and institutional framework), macroeconomic performances, market capitalization and taxation. The results are identified factors of business environment relevant for attraction of FDI and provided empirical model for each country respectively.

UR - https://hrcak.srce.hr/index.php?show=toc&id_broj=16148

M3 - Article

JO - Economic Research-Ekonomska Istrazivanja

JF - Economic Research-Ekonomska Istrazivanja

SN - 1331-677X

ER -