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INTERNATIONALIZATION AND ECONOMIC GROWTH IN THE NEW MEMBER STATES OF THE EUROPEAN UNION

100%
Lejko I., Bojnec Š.
Ekonomický časopis (Journal of Economics)
|
2012
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vol. 60
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issue 4
335 – 348
EN
The paper analyses the internationalization of the economies in ten new member states (NMS-10) of the European Union (EU) using panel data for the period 2000 – 2008 in a regression framework analysis. The degree of internationalization is measured by foreign direct investment (FDI) and trade openness. The focus is on the association between FDI and economic growth. We have confirmed moderate positive effect of inward FDI on growth of gross domestic product (GDP), but not for outward FDI and trade openness. Investment to GDP ratio and employment growth are positively associated with economic growth, and vice versa rate of inflation and government final consumption expenditure as a percentage of GDP.
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