The Automotive Industry in Central and Eastern Europe – Engine of Grow or Free Rider?
Oxford Business and Economics Conference (OBEC), Oxford University, UK, June 24-26, 2009
27 Pages Posted: 11 Apr 2011
Date Written: February 28, 2009
The impact of FDI onto host countries economies is heavily debated, particularly for transition economies. However, sectoral research is scarce. Building on Aristotelous and Fountas (1996) and using data from automobile manufacturers associations (OICA and ACEA), we analyze the impact of automotive FDI on exports and GDP growth for five transition economies over the 1995-2006 period. We find that automotive FDI triggered economic growth in several CEE countries, though at varying degrees.
Keywords: Sectoral FDI, Foreign Direct Investment, Automotive Industry, Transition Economies, CEESEE, Panel Data Analysis
JEL Classification: E22, F15, F21, F23, F36, L62, M21, O11, O52, P31
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