The Impact of Macroeconomic Indicators and FDI Inflows on the Economic Growth
The Impact of Macroeconomic Indicators and FDI Inflows on the Economic Growth

Author(s): Dejana Ercegovac, Mirela Momčilović, Željko Račić
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: FDI Inflows; Economic growth; Panel Data Analysis
Summary/Abstract: The focus of this paper is to test the relevance of chosen macroeconomic indicators and FDI net inflows on the economic growth stimulation in the sample of Emerging European Economies and sub-sample of Visegrad States in the period 1997-2017. This empirical research comprises from analysis of robust panel data modes on the total sample level and in the two analyzed sub-periods (before and after the Global Financial Crisis - GFC) with the use of a dummy variable for the Visegrad States. The results of robust estimations indicate that greater FDI net inflows are a relevant factor of economic growth on the total sample level and in the Visegrad States after the GFC. Based on the empirical findings, the authors suggest that policymakers in the Western Balkans should introduce the necessary promotion measures in order to attract greater FDI inflows and boost the economic development level.

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