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  • The impact of economic internationalization on economic growth [Elektronski vir]
    Lejko, Ina ; Bojnec, Štefan
    The paper analyses the economic growth of ten new member states (NMS-10) of the European Union (EU) in relation to internationalization of economies. The degree of internationalization is measured by ... foreign direct investment (FDI) and international trade. The widespread opinion of research literature is that there is an existing association between internationalization of economies through international trade and FDI on one hand and economic growth on the other. Our research focus is on NMS-10 before and after their accession to the EU. We expect that EU economic integration has contributed essentially to the increase of trade and FDI flows. We investigate both the impact of inward FDI and outward FDI on host country's economic growth. In addition, we test the association between international trade and economic growth. The research uses panel datasets for the NMS-10 during the period 2000-2008. We employ panel data regression analyses using fixed effects model. We find that trade and investment liberalization have provided an important incentive for exports and FDI flows in NMS-10 countries, which have had a positive impact on their economic growth. The findings would be useful for possible scenarios and thus for predicting the change in trade and FDI flows for the candidate countries as future members of EU with implications, which are expected by accession in EU.
    Type of material - conference contribution ; adult, serious
    Publish date - 2011
    Language - english
    COBISS.SI-ID - 3954391