<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In order to improve the competitive position and ensure continuous and sustainable economic growth in the international market, Western Balkan countries have recognized export sectors and branches as success generators. However, the low accumulation of economies in the region and insufficient export orientation have led to a major reliance on foreign direct investment (hereinafter: FDI), which have become the drivers of the economic growth of some sectors. The aim of this research is to evaluate the impact of FDI inflows on export trends in the Western Balkan countries, as well as in some Central and Eastern European countries, that have a similar political and economic history as the Western Balkan countries. These countries were used as a basis for comparing and interpreting results related to the Western Balkan countries. Panel regression with fixed-effects is a method that was applied in attempt to determine the real impact of FDI on export. The research that has been conveyed shows that there is a statistically significant positive effect of FDI on the growth of the Western Balkan countries export. Anyway, the model describes only a small impact on the export, which means that the growth of the export should be looking more into some other factors, rather than in the invested capital origin.</p></abstract>

In order to improve the competitive position and ensure continuous and sustainable economic growth in the international market, Western Balkan countries have recognized export sectors and branches as success generators. However, the low accumulation of economies in the region and insufficient export orientation have led to a major reliance on foreign direct investment (hereinafter: FDI), which have become the drivers of the economic growth of some sectors. The aim of this research is to evaluate the impact of FDI inflows on export trends in the Western Balkan countries, as well as in some Central and Eastern European countries, that have a similar political and economic history as the Western Balkan countries. These countries were used as a basis for comparing and interpreting results related to the Western Balkan countries. Panel regression with fixed-effects is a method that was applied in attempt to determine the real impact of FDI on export. The research that has been conveyed shows that there is a statistically significant positive effect of FDI on the growth of the Western Balkan countries export. Anyway, the model describes only a small impact on the export, which means that the growth of the export should be looking more into some other factors, rather than in the invested capital origin.

The Impact Analysis of Foreign Direct Investment on Export: The Case of the Western Balkan Countries

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

In order to improve the competitive position and ensure continuous and sustainable economic growth in the international market, Western Balkan countries have...

The Impact Analysis of Foreign Direct Investment on Export: The Case of the Western Balkan Countries

Published Online: Jul 17, 2020

Page range: 171 - 186

Received: Apr 27, 2020

Accepted: Jun 04, 2020

DOI: https://doi.org/10.2478/ethemes-2020-0010

Keywords
foreign direct investment (FDI), export, gross domestic product (GDP), Western Balkans

© 2020 Marko Savićević et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Impact Analysis of Foreign Direct Investment on Export: The Case of the Western Balkan Countries

Published Online: Jul 17, 2020

Page range: 171 - 186

Received: Apr 27, 2020

Accepted: Jun 04, 2020

DOI: https://doi.org/10.2478/ethemes-2020-0010

Keywordsforeign direct investment (FDI), export, gross domestic product (GDP), Western Balkans

© 2020 Marko Savićević et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
foreign direct investment (FDI), export, gross domestic product (GDP), Western Balkans