Naslov
Foreign Direct Investment and Export Incentive Policies: Do They Enhance Growth?

Autori
Bilas, Vlatka ; Franc, Sanja ; Jurakić, Marko

Izvornik
Montenegrin Journal of Economics (1800-5845) 18 (2022), 3; 155-168

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, pregledni rad, znanstveni

Ključne riječi
foreign direct investment, economic growth, causal relationship, Croatia, incentive policy

Sažetak
The main idea of the paper is to determine whether incentive policies contribute to economic growth. The goal of the research is to examine whether foreign direct investments and export promote economic growth with the purpose of determining a causal relationship between the variables and then identifying implications for policy measures. Policy makers design and implement various incentive policies but those often do not bring expected benefits. A careful consideration of budget costs and benefits is therefore required. Various econometric methods on different series definitions are used to ensure the robustness of the findings, including unit-root tests with structural break, Engle- Granger cointegration tests, Johansen cointegration test, and Granger causality test. Empirical testing was conducted to test the hypothesis that incentive policies do not fulfill their purpose in ensuring growth. Findings reveal that foreign direct investment and export of goods and services do not have an unequivocally statistically significant impact on the economic growth in the Republic of Croatia which leads to the conclusion that incentive measures did not fulfill their potential.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA