IDEAS home Printed from https://ideas.repec.org/a/aic/journl/y2010vsep85-96.html
   My bibliography  Save this article

Determinants Of Foreign Direct Investment In Ceecs: The Role Of Financial Stability

Author

Listed:
  • Claudiu Tiberiu Albulescu

    (Ecological University Traian of Deva, Deva/Romania)

  • Lucian Briciu

    (Fortis Bank,Brussels/Belgium)

  • Sorina Ioana Coroiu

    (University of Oradea, Oradea/Romania)

Abstract

The globalization process has an important impact on the foreign direct investment flows. The FDI are increasingly important to developing countries, such as the Central and Eastern European countries. The EU accession has stimulated the investors’ confidence, and it has contributed to their economic development. According to the economic theory, the factors influencing the FDI are numerous and related to the country, sector and company’s characteristics. One classification groups these factors in three broad categories: economic policy of host country, economic performance and attractiveness of na-tional economy. In this paper, we point out a new FDI determinant: financial stability. The financial system stability represents an attractive factor for the foreign investors and can be considered as a FDI determinant, alongside the categories mentioned above. Using a large sample of Central and Eastern European countries and panel data techniques, we investigate the impact of the financial stability on the FDI flows. The financial stability’s measure is based on a financial stability aggregate index and we use as control variables the number of inhabi-tants, the trade openness, the labor productivity, and the landing rate. The results show that the stability of the financial systems played a significant role in attracting FDI inflows in Central and Eastern Europe during the 1998-2008 period.

Suggested Citation

  • Claudiu Tiberiu Albulescu & Lucian Briciu & Sorina Ioana Coroiu, 2010. "Determinants Of Foreign Direct Investment In Ceecs: The Role Of Financial Stability," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 2010, pages 85-96, july.
    • Handle: RePEc:aic:journl:y:2010:v:se:p:85-96
    as

    Download full text from publisher

    File URL: http://anale.feaa.uaic.ro/anale/resurse/fin1albulescu.pdf
    Download Restriction: no
    File URL: http://anale.feaa.uaic.ro/anale/ro/Arhiva%202010-Albulescu_Briciu_Coroiu/314
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emel SIKLAR & Ilyas SIKLAR, 2022. "Does Foreign Direct Investment Affect Macroeconomic Dynamics? An S-VAR Approach for Turkey," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 8(3), pages 85-103, 09-2022.
    2. Albulescu, Claudiu Tiberiu & Ionescu, Adrian Marius, 2018. "The long-run impact of monetary policy uncertainty and banking stability on inward FDI in EU countries," Research in International Business and Finance, Elsevier, vol. 45(C), pages 72-81.

    More about this item

    Keywords

    foreign direct investment; financial stability; Central and Eastern European countries;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:journl:y:2010:v:se:p:85-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.