The Determinants of Foreign Direct Investment Flows in EU: Dynamic Panel Data Analysis

Article Information

Journal: Business and Economics Research Journal

Title of Article: AB’ye Doğrudan Yabancı Yatırım Girişlerini Belirleyen Faktörler: Dinamik Panel Veri Analizi
[The Determinants of Foreign Direct Investment Flows in EU: Dynamic Panel Data Analysis]

Author(s): Fatma Zeren, Suzan Ergun

Volume: 1

Number: 4

Year: 1

Page: 67 – 83

ISSN: 1309-2448

Abstract

The aim of this study is to modify the factors that effect the foreign direct investments (FDI) inflows to the European Union countries. These factors are investigated by using panel data analysis over the 1995-2007 periods. Empirical results show that beside the openness and development level, especially gross domestic growth rate increase the FDI inflows. On the other hand, it’s identified that current account balance and gross capital formation are negatively related to FDI inflows.

Keywords: Foreign direct investment, Gross domestic product, European Union, Dynamic panel data, System GMM method

JEL Classification: C23, F21

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