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FDI Localization, Wage and Urbanization in Central Europe. Comparative study of the evolution of stock returns for listed

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  • Mehdi Behname

    (Department of Economics of Ferdowsi University of Mardowsky University of Shir)

Abstract

This paper studies the impacts of urbanization and wage on foreign direct investment (FDI) in Central Europe. This paper applies the panel data model for study of urbanization and FDI in Central Europe selected countries. We consider Central Europe selected countries over the period 1992-2009. Our estimation shows the urbanization has positive impact on attraction of FDI. We find that human capital and economic growth (market potential) are favorable for FDI flows. Distance has negative effect on FDI. Economic risk (inflation) and increasing in wage level also have negative impact on foreign direct investment.

Suggested Citation

  • Mehdi Behname, 2013. "FDI Localization, Wage and Urbanization in Central Europe. Comparative study of the evolution of stock returns for listed," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(48), pages 23-36, June.
    • Handle: RePEc:rej:journl:v:16:y:2013:i:47:p:23-36
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    Cited by:

    1. Suborna Barua & Junnatun Naym & Hazera-Tun-Nessa, 2017. "Economic Climate, Infrastructure and FDI: Global Evidence with New Dimensions," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 16(1), pages 31-48, June.

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    More about this item

    Keywords

    Foreign Direct Investment; Wage; Central Europe; Urbanization;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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