THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN BULGARIA, ROMANIA AND CROATIA DURING THE RECENT ECONOMIC CRISIS1
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Authors:
• Mirel - Daniel SIMIONESCU, PhD Student, email: daniel13_sim@yahoo.com, Afiliation: National Institute for Economic Researches, Romanian AcademyPages:
• 149|158 -
Keywords: FDI, economic growth, Bayesian models, crisis
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Abstract:
The main aim of this research was to identify the relationship between economic growth and foreign direct investment (FDI) inflows during the recent global crisis in the last three countries that entered European Union (EU): Bulgaria, Romania and Croatia. The Bayesian regression models were used for this short period and the results indicated that during 2008-2015, in Bulgaria and Romania the increase in real GDP rate attracted more FDI, but these FDI did not generate economic growth. On the other hand, even if higher GDP attracted more FDI, in Croatia, FDI was an engine of economic growth since 2008.
