An Investigation of the Role of FDI in Stimulating Growth in EU: Evidence from Panel ARDL Analysis

IF 1.2 Q4 BUSINESS

Journal of East-West Business Pub Date : 2023-01-02 DOI:10.1080/10669868.2022.2163022

Chrysanthi Tsimpida, Aristidis P. Bitzenis

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引用次数: 1

Abstract

Abstract The study aims to examine the FDI-growth nexus in EU countries for the period 1996–2018. Empirical literature has suggested ambiguous results regarding the beneficial effects of FDI on host economies. In this study panel ARDL approach is employed using the PMG estimator, as the most suitable for our dataset. DFE and MG estimators are also implemented. The results indicate strong evidence that there is a positive long-run relationship between FDI and growth for the original EU members. However, regarding the new EU members, only the extended model provides statistical evidence of positive long-run relationship between FDI and growth. The positive and statistically significant long-run relationship between FDI and economic growth for all countries underlines the need for policy makers to formulate policies to attract FDI. Furthermore, the results of the study show that policy makers of EU countries characterized by high levels of corruption should focus on anti-corruption policies, as corruption seems to hinder the positive effects of both FDI and other determinants of economic growth.

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FDI对欧盟经济增长的刺激作用研究:来自面板ARDL分析的证据

本研究旨在考察1996-2018年期间欧盟国家的外国直接投资与增长关系。关于外国直接投资对东道国经济的有利影响，实证文献提出了模棱两可的结果。在这个研究小组中，ARDL方法使用PMG估计器，因为最适合我们的数据集。还实现了DFE和MG估计器。研究结果有力地表明，FDI与欧盟原成员国的经济增长之间存在着长期的正相关关系。然而，对于欧盟新成员国，只有扩展模型提供了FDI与增长之间长期正相关的统计证据。对所有国家来说，外国直接投资与经济增长之间的长期积极和统计意义显著的关系强调了决策者需要制定吸引外国直接投资的政策。此外，研究结果表明，腐败程度高的欧盟国家的政策制定者应该把重点放在反腐败政策上，因为腐败似乎阻碍了外国直接投资和其他经济增长决定因素的积极影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of East-West Business BUSINESS-

CiteScore

2.10

自引率

26.70%

发文量

期刊介绍： Journal of East-West Business is a quarterly journal that deals with contemporary and emerging aspects of business studies, strategies, development, and practice as they relate to the Russian Federation, the new republics of the Commonwealth of Independent States, and Eastern/Central Europe-and business relationships with other countries of the world. The Journal of East-West Business is international in scope and treats business issues from comparative, cross-cultural, and cross-national perspectives. The journal features an Editorial Advisory Board that represents the Russian Federation, Eastern/Central European, and Baltic states in this new business arena.