Panel Data Analysis of the Impact of Economic and Institutional Factors upon the FDI Inflow in See Countries

Abstract

The panel data analysis presented in this paper focuses on the impact of economic and institutional factors upon the attractiveness of the economies of South- East Europe (SEE): Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Montenegro, Romania, Serbia, Kosovo and Croatia for foreign direct investment (FDI). The analysis was done for a period of twenty years (1995-2015) in order to examine which determinants are significant for increased FDI inflow in the SEE countries on a basis of a holistic approach using multiple regressions. Taking into account both economic and institutional variables, the results of the analysis indicate both of them to be significant for attracting FDI.