Event Title

The Importance and Impact of Foreign Direct Investments (FDI) in Transition Economies

Session

Management, Business and Economics

Description

The literature on FDI impacts is enormous, but the results from different studies regarding the impact of FDI on the economy are inconclusive. However, as far as transition countries are concerned, we can witness more agreement on the [positive] effects especially in some advanced transition countries hence considering FDI a lead driver for sustainable development. Because of the [quick and challenging] transition from planned to market economy, in most of the transition countries domestic capital is incapable to meet all investment needs. Therefore, the role and impact of FDI is more than crucial in the transition economies comparing to developed countries. In general, not all economists would agree on positive effects and impact of FDI, but when it comes to undeveloped especially transition economies, according to economic literature, there is more agreement on positive effects of FDI in economic development. In general, the main focus of this paper is to examine the impact of the FDI in transition countries based on literature review and recent empirical FDI studies. The paper will be focused but not limited to impact of FDI on output and growth, employment and wages, productivity, technology transfer and networking. Below we will overview and discuss these impacts separately. A summary of selected FDI studies and its impacts will be presented too.

Keywords:

FDI, Transition Countries, Growth, Productivity, Employment, Networking, Technology Transfer

Session Chair

Edmond Hajrizi

Session Co-Chair

Naim Preniqi

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

Location

Lipjan, Kosovo

Start Date

31-10-2020 9:00 AM

End Date

31-10-2020 10:30 AM

DOI

10.33107/ubt-ic.2020.323

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Oct 31st, 9:00 AM Oct 31st, 10:30 AM

The Importance and Impact of Foreign Direct Investments (FDI) in Transition Economies

Lipjan, Kosovo

The literature on FDI impacts is enormous, but the results from different studies regarding the impact of FDI on the economy are inconclusive. However, as far as transition countries are concerned, we can witness more agreement on the [positive] effects especially in some advanced transition countries hence considering FDI a lead driver for sustainable development. Because of the [quick and challenging] transition from planned to market economy, in most of the transition countries domestic capital is incapable to meet all investment needs. Therefore, the role and impact of FDI is more than crucial in the transition economies comparing to developed countries. In general, not all economists would agree on positive effects and impact of FDI, but when it comes to undeveloped especially transition economies, according to economic literature, there is more agreement on positive effects of FDI in economic development. In general, the main focus of this paper is to examine the impact of the FDI in transition countries based on literature review and recent empirical FDI studies. The paper will be focused but not limited to impact of FDI on output and growth, employment and wages, productivity, technology transfer and networking. Below we will overview and discuss these impacts separately. A summary of selected FDI studies and its impacts will be presented too.