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The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

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  • Calin-Adrian Comes

    (Financial-Accounting Department, Faculty of Business and Law, Petru Maior University of Tîrgu-MureŞ, Tîrgu-MureŞ 540 088, MUREŞ County, Romania
    Romanian Research Group for Corporate Finance, Aleea Nordului 1, Livezeni 547 365, MUREŞ County, Romania
    Current address: Nicolae Iorga 1, Tîrgu-MureŞ 540 088, MUREŞ County, Romania.
    These authors contributed equally to this work.)

  • Elena Bunduchi

    (Financial-Accounting Department, Faculty of Business and Law, Petru Maior University of Tîrgu-MureŞ, Tîrgu-MureŞ 540 088, MUREŞ County, Romania
    These authors contributed equally to this work.)

  • Valentina Vasile

    (Institute of National Economy, Romanian Academy, Casa Academiei, Calea 13 Septembrie 13, Sector 5, Bucharest 050 711, Romania
    These authors contributed equally to this work.)

  • Daniel Stefan

    (Financial-Accounting Department, Faculty of Business and Law, Petru Maior University of Tîrgu-MureŞ, Tîrgu-MureŞ 540 088, MUREŞ County, Romania
    Romanian Research Group for Corporate Finance, Aleea Nordului 1, Livezeni 547 365, MUREŞ County, Romania
    These authors contributed equally to this work.)

Abstract

This paper investigates the impact of Foreign Direct Investment (FDI) and remittances on Economic Growth (EG), using panel data of seven countries from Central and Eastern Europe with a Gross Domestic Product (GDP) per capita under 25,000 $. The empirical literature stressed the relationships between FDI and remittances and economic growth, and our purpose is to identify if there are significant relationships between FDI, remittances and economic growth in the seven analyzed countries. We find a positive impact of both FDI and remittances on GDP, but the influence of FDI is higher in all analyzed states, with accepting the assumption of ceteris paribus principles in limiting research caused by other possible determinants.

Suggested Citation

  • Calin-Adrian Comes & Elena Bunduchi & Valentina Vasile & Daniel Stefan, 2018. "The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe," Sustainability, MDPI, vol. 10(1), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:1:p:238-:d:127506
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    References listed on IDEAS

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