IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v27y2013i6p766-797.html
   My bibliography  Save this article

Complements or substitutes? New theoretical considerations and empirical evidence on the imports and FDI relationship in Central and Eastern European Countries

Author

Listed:
  • Fragkiskos Filippaios
  • Constantina Kottaridi

Abstract

This paper addresses the imperative need to understand the relationship between inward FDI and trade by developing a new conceptual approach and providing empirical evidence. We use an expanded time dataset, from 1992 to 2008 and an enriched dataset of countries, sectors and location factors. In regards to the inward FDI versus imports relationship, results comply with our theoretical formulation and strongly indicate an overall complementarity with each other. In the case of FDI we find strong locational characteristics such as the large market size, the gradual improvement of the macro-environment and finally the quality of labour force to play a positive role.

Suggested Citation

  • Fragkiskos Filippaios & Constantina Kottaridi, 2013. "Complements or substitutes? New theoretical considerations and empirical evidence on the imports and FDI relationship in Central and Eastern European Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(6), pages 766-797, November.
    • Handle: RePEc:taf:irapec:v:27:y:2013:i:6:p:766-797
    DOI: 10.1080/02692171.2013.826633
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02692171.2013.826633
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692171.2013.826633?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Klaus E. Meyer, 1998. "Direct Investment in Economies in Transition," Books, Edward Elgar Publishing, number 1413.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Hu, Gang-Gao, 2021. "Is knowledge spillover from human capital investment a catalyst for technological innovation? The curious case of fourth industrial revolution in BRICS economies," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    2. Curran, Louise & Lv, Ping & Spigarelli, Francesca, 2017. "Chinese investment in the EU renewable energy sector: Motives, synergies and policy implications," Energy Policy, Elsevier, vol. 101(C), pages 670-682.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matija Rejec & Slavica Penev, 2011. "Attractiveness of Western Balkan Countries for FDI," Book Chapters, in: Mirjana Radovic Markovic & Srdjan Redzepagic & João Sousa Andrade & Paulino Teixeira (ed.), Serbia and the European Union: Economic Lessons from the New Member States, edition 1, volume 1, chapter 2, pages 27-46, Institute of Economic Sciences.
    2. Helena Hannula, 2001. "Restructuring of the Estonian economy and the role of FDIs in it," University of Tartu - Faculty of Economics and Business Administration, in: Foreign Direct Investments in the Estonian Economy, volume 9, chapter 3, pages 91-174, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Majcen, Boris & Radosevic, Slavo & Rojec, Matija, 2009. "Nature and determinants of productivity growth of foreign subsidiaries in Central and East European countries," Economic Systems, Elsevier, vol. 33(2), pages 168-184, June.
    4. Saul Estrin, 2017. "Foreign direct investment and employment in transition economies," IZA World of Labor, Institute of Labor Economics (IZA), pages 330-330, January.
    5. Sandor Buzas & Judit Habuda & Csaba Novak, 2002. "What patterns does Hungary's real integration into the EU show - A Heckscher-Ohlin model and some time-series analyses," IWE Working Papers 123, Institute for World Economics - Centre for Economic and Regional Studies.
    6. repec:dgr:rugsom:05g07 is not listed on IDEAS
    7. Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009. "The Effects of Privatization and Ownership in Transition Economies," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 699-728, September.
    8. Fabienne Boudier‐Bensebaa, 2005. "Agglomeration economies and location choice: Foreign direct investment in Hungary," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 605-628, October.
    9. Beata K. Smarzynska & Shang-Jin Wei, 2000. "Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence," NBER Working Papers 7969, National Bureau of Economic Research, Inc.
    10. Slavo Radosevic, 2003. "The emerging industrial architecture of the wider Europe: The co-evolution of industrial and political structures," UCL SSEES Economics and Business working paper series 29, UCL School of Slavonic and East European Studies (SSEES).
    11. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
    12. Capolupo, Rosa & Celi, Giuseppe, 2005. "Openness and Growth in Central Eastern European Countries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 58(2), pages 141-165.
    13. Slangen, Arjen & Hennart, Jean-François, 2007. "Greenfield or acquisition entry: A review of the empirical foreign establishment mode literature," Journal of International Management, Elsevier, vol. 13(4), pages 403-429, December.
    14. Pawlik, Konrad, 2005. "Export performance of MNE affiliates in Polish Manufacturing: 1993-2002. A study on knowledge mandate, transfer and absorption," Working Papers 2005-6, University of Aarhus, Aarhus School of Business, Department of Management.
    15. Görg, Holger & Lauber, Verena & Meyer, Birgit & Nunnenkamp, Peter, 2008. "Firm heterogeneity and choice of ownership structure: an empirical analysis of German FDI in India," Kiel Working Papers 1462, Kiel Institute for the World Economy (IfW Kiel).
    16. Sergey Filippov & Kálmán Kalotay, 2009. "New Europe’s Promise for Life Sciences," Chapters, in: Wilfred Dolfsma & Geert Duysters & Ionara Costa (ed.), Multinationals and Emerging Economies, chapter 3, Edward Elgar Publishing.
    17. Azam, Muhammad & Khan, Hashim & Hunjra, Ahmed Imran & Ahmad, H. Mushtaq & Chani, Muhammad Irfan, 2011. "Institutions, macroeconomic policy and foreign direct investment: South Asian countries case," MPRA Paper 32480, University Library of Munich, Germany.
    18. Witteloostuijn, Adriaan van & Dikova, Desislava, 2005. "Acquisition versus greenfield foreign entry : diversification mode choice in Central and Eastern Europe," Research Report 04G26, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    19. Mengjun Xie, 2018. "Can Cultural Affinity Promote Trade ? HSK Test Data from the Belt and Road Countries," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(3), pages 109-126, May.
    20. Nina Bandelj, 2010. "How EU Integration and Legacies Mattered for Foreign Direct Investment into Central and Eastern Europe," Europe-Asia Studies, Taylor & Francis Journals, vol. 62(3), pages 481-501.
    21. Werner Pascha & Cornelia Storz & Markus Taube (ed.), 2011. "Institutional Variety in East Asia," Books, Edward Elgar Publishing, number 14221.

    More about this item

    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:taf:irapec:v:27:y:2013:i:6:p:766-797. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    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.