Trade and foreign direct investment: Evidence from South East European countries and new European Union member states
The goal of this research is to provide an empirical assessment of the complementarity or substituting relationship between Trade and FDI in a link to country characteristics, using bilateral level data between FDI and trade for the period 1994 – 2010. In the research, an augmented gravity model...
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Faculty of Economics University of Rijeka
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Online Access: | https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/02-dauti-2016-1-1467379898.pdf |
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doaj-02755f7a1e4b415ab552ca87f63b6d3a2020-11-25T02:49:26ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80042016-06-01341638910.18045/zbefri.2016.1.63Trade and foreign direct investment: Evidence from South East European countries and new European Union member statesBardhyl Dauti0Assistant Professor, Faculty of Economics, University of Tetovo, Tetovo, Macedonia.The goal of this research is to provide an empirical assessment of the complementarity or substituting relationship between Trade and FDI in a link to country characteristics, using bilateral level data between FDI and trade for the period 1994 – 2010. In the research, an augmented gravity model has been used to test the relationship between Trade (both export and import), FDI stock and country characteristics between OECD-20 countries and SEE-5 and EU-NMS-10 countries. The empirical model considers how the relationship between FDI and Trade determine whether type of FDI into SEE-5 and EU-NMS-10 from core OECD-20 countries, is vertical or horizontal. With regard to the relationship between exports and FDI, the findings of the research showed mixed evidence, thus supporting vertical FDI for EU-NMS-10 countries, and horizontal FDI for SEE-5 countries. On the other hand, based on the relationship between imports and FDI, the results of the research supported vertical FDI for both EU-NMS-10 and SEE-5 group of countries. The basic conclusion is that the research provides an empirical evidence on the mixed nature of FDI into the host SEE-5 and EU-NMS-10 countries, supporting both complementary and substituting relationship between trade and FDI in the host countries.https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/02-dauti-2016-1-1467379898.pdfforeign direct investmenttradecomplementssubstitutesgravity model |
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deu |
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DOAJ |
author |
Bardhyl Dauti |
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Bardhyl Dauti Trade and foreign direct investment: Evidence from South East European countries and new European Union member states Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu foreign direct investment trade complements substitutes gravity model |
author_facet |
Bardhyl Dauti |
author_sort |
Bardhyl Dauti |
title |
Trade and foreign direct investment: Evidence from South East European countries and new European Union member states |
title_short |
Trade and foreign direct investment: Evidence from South East European countries and new European Union member states |
title_full |
Trade and foreign direct investment: Evidence from South East European countries and new European Union member states |
title_fullStr |
Trade and foreign direct investment: Evidence from South East European countries and new European Union member states |
title_full_unstemmed |
Trade and foreign direct investment: Evidence from South East European countries and new European Union member states |
title_sort |
trade and foreign direct investment: evidence from south east european countries and new european union member states |
publisher |
Faculty of Economics University of Rijeka |
series |
Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
issn |
1331-8004 |
publishDate |
2016-06-01 |
description |
The goal of this research is to provide an empirical assessment of the
complementarity or substituting relationship between Trade and FDI in a link to
country characteristics, using bilateral level data between FDI and trade for the
period 1994 – 2010. In the research, an augmented gravity model has been used to
test the relationship between Trade (both export and import), FDI stock and
country characteristics between OECD-20 countries and SEE-5 and EU-NMS-10
countries. The empirical model considers how the relationship between FDI and
Trade determine whether type of FDI into SEE-5 and EU-NMS-10 from core
OECD-20 countries, is vertical or horizontal. With regard to the relationship
between exports and FDI, the findings of the research showed mixed evidence, thus
supporting vertical FDI for EU-NMS-10 countries, and horizontal FDI for SEE-5
countries. On the other hand, based on the relationship between imports and FDI,
the results of the research supported vertical FDI for both EU-NMS-10 and SEE-5
group of countries. The basic conclusion is that the research provides an empirical
evidence on the mixed nature of FDI into the host SEE-5 and EU-NMS-10
countries, supporting both complementary and substituting relationship between
trade and FDI in the host countries. |
topic |
foreign direct investment trade complements substitutes gravity model |
url |
https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/02-dauti-2016-1-1467379898.pdf |
work_keys_str_mv |
AT bardhyldauti tradeandforeigndirectinvestmentevidencefromsoutheasteuropeancountriesandneweuropeanunionmemberstates |
_version_ |
1724743462475005952 |