Pregled bibliografske jedinice broj: 601839
What makes Croatia (un)interesting to foreign investors? Evidence from bilateral FDI determinants analysis
What makes Croatia (un)interesting to foreign investors? Evidence from bilateral FDI determinants analysis // EBES 2012 Warsaw Conference
Varšava, Poljska, 2012. (predavanje, nije recenziran, sažetak, znanstveni)
CROSBI ID: 601839 Za ispravke kontaktirajte CROSBI podršku putem web obrasca
Naslov
What makes Croatia (un)interesting to foreign investors? Evidence from bilateral FDI determinants analysis
Autori
Botrić, Valerija
Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni
Skup
EBES 2012 Warsaw Conference
Mjesto i datum
Varšava, Poljska, 01.11.2012. - 03.11.2012
Vrsta sudjelovanja
Predavanje
Vrsta recenzije
Nije recenziran
Ključne riječi
bilateral foreign direct investment; FDI determinants; Croatia
Sažetak
Foreign direct investments (FDI) are important not only because they provide capital to financially starved transition economies, but more importantly because they, at least in theory, are associated with knowledge transfer and efficiency increases. This paper provides analysis of the determinants of bilateral FDI flows into Croatia from major FDI-home countries in the 1999-2010 period. Using the GMM methodology, the results imply that the relative wage differences and relative tax shares are significant determinants, while relative GDP per capita and relative inflation rates are not significant determinants. Thus, indicators of the overall macroeconomic stability and market potential were found less important than specific business cost variables (labour costs and taxes). In addition of overall FDI, the structure of FDI according to the economic activities is important. Most of the FDI in Croatia is concentrated in the service sector. At the same time, investments into manufacturing sector are proclaimed as being desirable in most policy documents. Analysis of the FDI determinants in manufacturing is performed for the 2001-2011 period by using the panel EGLS method. The results imply that the wages and productivity differences between Croatia and FDI-home countries play important role in attracting FDI, confirming previous results obtained for all economic activities. These results on the economic activity as well as national economy level taken together imply that the labour market reforms are necessary in Croatia in order to attract more investment.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
