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EN
The aim of this article is to present the factors fostering foreign direct investment in Ukraine. The gravity model was used in order to utilize the aim of the study. This model is based on the principle that the level of FDI between two countries is based on the level of GDP. Additionally if the distance between the countries is quite high, the cost of the foreign trade increases and this is the impulse of foreign direct investment increase. The gravity model was verified in market oriented countries, but there is lack of studies in the transformational economies.
EN
In recent years, the world economy has experienced a growth of gross exports relative to production output, which can to some extent be explained by a more intensive use of global value chains: the number of intermediate inputs being transported from one country to another within the production process is increasing. The article examines the existing approaches to determining the added value that is being formed in global production chains. It is substantiated that such analysis allows to determine where the most added value is formed, and also to form possible directions for the development of a chain's operating elements. It is emphasized that a company or a country should strive to have presence in those sections of global chains where a greater added value is generated. But in addition to building into existing chains, the country's own industrial policy is also important, and it eventually leads to structural shifts in the country's industry.
EN
The paper develops a district-level gravity-type model of foreign direct investment (FDI) stock in Slovakia using Poisson Pseudo Maximum Likelihood estimation based on the most recent investment data compiled by the National Bank of Slovakia (NBS). Population and wages as well as distance from Bratislava, access to freeway and presence of universities are shown to be statistically significant determinants of FDI stock. The statistical significance of distance from regional capital and size of the largest city could not be established, which we believe is a result of the small size of Slovakia’s districts, dense network of public transportation and a low number of cities of the size required for agglomeration economies. The estimated single-core gravity-type model is robust to different specifications of distance, use of different estimation methods and omission of outliers.
EN
This study investigates the determinants of the Visegrad Group (V-4) export performance with special attention to quantitative analysis of bilateral trade flows. Based on preliminary statistical analysis, a broad categorization of export directions for V-4 is introduced. Innovative application of the gravity model for international trade is applied to the various trade direction categories, revealing important results particularly in regards to the significance of inward FDI, the restrictive forces associated with the distance between markets, and the relative importance of estimates for aggregate supply and demand potentials. A new variable is introduced in this study to account for the fact that there is a new political border between Czech Republic and Slovakia. Evidence from this study suggests that the fact that these two now independent nations were unified until about 15 years ago remains a strong positive factor for the size of trade flows between them.
EN
Using a gravity model, this article explores the determinants driving stocks of international migrants from developing countries in Czechia and in Slovakia. It presents an overview of international migration to both countries between the years 2006 and 2015 including the major countries of origin. It also proposes a brief discussion of different migration theories that can be used to explain the number of international migrants in both destinations. The gravity model used throughout the study includes four groups of explanatory variables: standard gravity variables, economic, institutional and those that approximate mutual relationships. The results show that the number of migrants in both destinations increases with higher GDP per capita and population in the countries of origin. Furthermore, mutual links such as trade or distance between the destinations and the countries of origin are significant as well. While only developing countries were selected for this analysis, this model provides a useful exploratory tool that can help with further analyses of migration flows to different countries and regions.
EN
Market liberalization in the countries of South East Europe (SEE), which was a consequence of free trade agreements with the European Union (EU) and the countries of the Central European Free Trade Agreement (CEFTA), led to changes in foreign trade flows of these countries’ agri-food products. As agri-food products are a significant part of total foreign trade in these countries, the objective of this paper is to analyse the liberalization effects established by CEFTA and EU integration. A gravity model for panel data was estimated for the agri-food sector of all SEE countries for the period 2005 – 2015, and databases from UN Comtrade and the World Bank were used to create an empirical base for this study. The results confirmed the importance of CEFTA integration, which made a significant contribution to imports and exports within this sector in most SEE countries. Additionally, the results showed that the Stabilization and Association Agreement (SAA) with the EU had limited effects on the import and export of agri-food products in SEE countries.
EN
In the article essence of gravity method is presented. The evolution and scientific and practical aspects of gravity method implementation in economics is given. Author examines peculiarities and suggests the explanation of principle for gravity model implementation for research the processes of transborder cooperation activation.
EN
The aim of this paper is to estimate whether the liberalization process benefited a mutual trade between the EU and BRICS Members over the last two decades, and whether protectionism, which is currently on the rise, still represents a significant toll to trade. Our results proved that the multilateral trade liberalization process, represented by the WTO, is no longer benefiting trade among observed economies. It clearly confirms the long-standing stalemate in the WTO. We have also found that the observed FTA between the EU and South Africa created trade strongly, but unevenly. Finally, we found that the level of tariffs no longer represents a significant barrier to trade among observed countries.
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