Template-Type: ReDIF-Paper 1.0

Author-Name: Mite Miteski
Author-Name-First: Mite
Author-Name-Last: Miteski
Author-Email: miteskim@nbrm.mk
Author-Workplace-Name: National Bank of the Republic of Macedonia

Author-Name: Dijana Janevska Stefanova
Author-Name-First: Dijana
Author-Name-Last: Janevska Stefanova
Author-Email: janevskad@nbrm.mk
Author-Workplace-Name: National Bank of the Republic of Macedonia

Title: The Impact of Sectorial FDI on Economic Growth in Central, Eastern and Southeastern Europe

Abstract: This paper investigates the effects of foreign direct investment inflows in the industrial, construction and services sectors on economic growth in a panel of sixteen Central, Eastern and Southeastern European CESEE countries using data of different time spans within the 1998-2013 period. The empirical results show that total FDI contributes positively to the growth in the analyzed countries. With regards to our main focus, the analysis of the decomposition of FDI finds that FDI in the industrial and services sectors has a positive and significant effect on economic growth, whereas FDI in the construction sector does not exert statistically significant growth-promoting effects.

Length: 29
Creation-Date: 2017
File-URL: http://www.nbrm.mk/content/Working%20papers/Impact_Sectorial_FDI_Economic_Growth_CEandS_Europe.pdf
File-Format: Application/pdf
File-Function: First version, 2016
Number: 2017-01
Classification-JEL: F21, F43, C23, O47
Keywords: Foreign direct investment, economic growth, industrial sector, construction sector, services sector: 
Handle: RePEc:mae:wpaper:2017-01