Assessing the inward foreign direct investment and their impact on gross domestic product growth in Central and Eastern Europe countries
Assessing the inward foreign direct investment and their impact on gross domestic product growth in Central and Eastern Europe countries

Summary/Abstract: The article is focused on researching the development of foreign direct investment (FDI) in Central and Eastern Europe countries (CEE) from 2010 to 2020. For FDI, we monitor two indicators - inward flows (as % of GDP) and inward flows (as % of world total) from two points of view (time period and individual countries). We also selected the indicator which considers the size of the country. It is the FDI stocks (as % of GDP), and we follow it in the year 2020. We work with descriptive geographic, demographic and socio-economic characteristics of the studied countries in 2020. Development of FDI from 2010 to 2020, comparison between years and countries as well as the influence of FDI on Gross Domestic Product (GDP) to find out if there is a relationship between its level and inward FDI are our research targets. The database for our research is freely available data from the World Bank and the United Nations Conference on Trade and Development. In the discussion section, we evaluate each indicator for each country separately. We apply the coefficient of variation to measure regional differences between CEE countries in the analyzed indicators. The main result shows that there is a strong direct connection between GDP and inward FDI (flows and stocks) at the beginning, in the middle, and at the end and of the monitored period in the analyzed countries.

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