SOCIAL EFFECTS OF FOREIGN DIRECT INVESTMENTS: A PANEL CAUSALITY ANALYSIS FOR THE CASE OF THE CEE
DOI:
https://doi.org/10.12775/JPM.2018.143Keywords
foreign direct investment, social effect, dynamic panel, panel causality, Central and Eastern EuropeAbstract
Purpose: The paper focus specifically on the impact of FDI and its contribution to the effectiveness of spending, a review of literature has revealed many attempts to evaluate the determinants of spending (i.e., education, health, and R&D). This study offers a modern approach to FDI and investigates the causal relationship between FDI and social effect in the Central and Eastern Europe.
Methodology: The study uses panel var for the period 2004-2015, and adopts a panel Granger causality analysis developed by Dumitrescu and Hurlin (2012) to assess the contribution FDI makes to social effect. The data were analysed with the use of R- Cran 3.5.1 (library: panelvar, plm).
Implications: Modelling these circumstances may be a potential direction for future studies aimed at investigating the causality between FDI and social effect in the CEE.
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