IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v32y2020i8p1089-1110.html
   My bibliography  Save this article

The determinants of FDI location choice in the Western Balkan countries

Author

Listed:
  • Safet Kurtović
  • Nehat Maxhuni
  • Blerim Halili
  • Sead Talović

Abstract

This paper examines the effects of traditional, institutional and agglomeration determinants on the choice of FDI location on a sample of six countries of the Western Balkans. We used the partial adjustment model, the static and dynamic panels, the Generalised Method of Moments (GMM) and a time series from 2007 to 2017. We have found that traditional (GDP per capita and GDP growth rate), agglomeration (urbanisation rate, foreign agglomerations in the service sector and the number of employees in the service sector) and institutional determinants (government spending) have a positive impact on the choice of FDI location. Additionally, we have concluded that the above-mentioned determinants have a positive impact on the adjustment speed towards a balanced per capita FDI stock. There is no convergence with regards to FDI; however, convergence exists with regards to the unrealised FDI stock due to the equilibrium FDI convergence.

Suggested Citation

  • Safet Kurtović & Nehat Maxhuni & Blerim Halili & Sead Talović, 2020. "The determinants of FDI location choice in the Western Balkan countries," Post-Communist Economies, Taylor & Francis Journals, vol. 32(8), pages 1089-1110, November.
    • Handle: RePEc:taf:pocoec:v:32:y:2020:i:8:p:1089-1110
    DOI: 10.1080/14631377.2020.1722584
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2020.1722584
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2020.1722584?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.

    Citations

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


    Cited by:

    1. Niaz Morshed & Mohammad Razib Hossain, 2022. "Causality analysis of the determinants of FDI in Bangladesh: fresh evidence from VAR, VECM and Granger causality approach," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.
    2. Mohammad Razib Hossain, 2021. "Inward foreign direct investment in Bangladesh: Do we need to rethink about some of the macro-level quantitative determinants?," SN Business & Economics, Springer, vol. 1(3), pages 1-23, March.
    3. Jelena Zvezdanoviæ Lobanova & Mikhail Lobanov & Milan, 2021. "Governance and civil and political rights as FDI determinants in transition countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 39(1), pages 59-86.
    4. Nathapornpan Piyaareekul Uttama & Rapipong Promnart, 2022. "Shadow economy and the efficiency of FDI inflow: the case of ASEAN economies," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 23(2), pages 136-155.
    5. Nathapornpan Uttama & Popkarn Arwatchanakarn, 2023. "How do economic complexity and productive capacities foster foreign direct investment flows? Evidence from the Asian economies," Economics Bulletin, AccessEcon, vol. 43(1), pages 629-643.
    6. Safet Kurtović & Nehat Maxhuni & Blerim Halili & Arta Maxhuni, 2024. "Effect of Host Country Determinants and Institutional Quality on Outward Foreign Direct Investment from Central, Eastern and South-Eastern Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13272-13308, September.
    7. Joel I. Deichmann & Stephen Grubaugh & Patrick Scholten, 2022. "FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 479-505, September.
    8. Safet Kurtović & Nehat Maxhuni & Blerim Halili & Bujar Krasniqi, 2022. "Does outward foreign direct investment crowd in or crowd out domestic investment in central, east and southeast europe countries? an asymmetric approach," Economic Change and Restructuring, Springer, vol. 55(3), pages 1419-1444, August.

    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:pocoec:v:32:y:2020:i:8:p:1089-1110. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    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.