IMPACT OF MACROECONOMIC FACTORS ON FOREIGN DIRECT INVESTMENT IN SELECTED SOUTHEASTERN EUROPEAN COUNTRIES

Jelena Andrašić, Vera Mirović, Branimir Kalaš

DOI Number
10.22190/TEME1804237A
First page
1237
Last page
1251

Abstract


Foreign direct investment has a significant role in Southeastern European countries. The aim of the paper is reflected in assessing the character and nature of the relationship between macroeconomic factors and foreign direct investment in Southeastern European countries. Further, the subject of paper includes the examination of the impact of selected macroeconomic variables on foreign direct investment in six countries for the period from 2000 to 2012. The selected countries are Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Romania and Serbia. The research includes an examination impact of market size, national competitiveness and employment on foreign direct investment. By using the Hausman test, it was confirmed that the fixed effect model is an appropriate model in panel analysis. Based on the result, it determined the positive impact of market size, while the industry's share of GDP and employment have a negative impact on this variable. Also, the results confirmed that only the market size of the countries significantly affected on the flow of foreign direct investment in Southeastern European countries.


Keywords

foreign direct investment, macroeconomic factors, Southeastern European countries.

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References


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DOI: https://doi.org/10.22190/TEME1804237A

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