Affiliation:
1. Faculty of Economic Sciences , University of Warsaw , Warsaw , Poland .
Abstract
Abstract
The main goal of this article is to study the determinants of foreign direct investment (FDI) in Ukraine from 2013 to 2017 that includes the years of armed conflict. We adopt the Knowledge-Capital model as our analytical framework and extend it to include the effects that account for political stability and political regime. The research hypotheses obtained from this framework are verified using the Pseudo-Poisson Maximum Likelihood estimation technique and the bilateral panel data on direct investment stocks from 140 partner countries. Our empirical findings show that access to Ukraine's cheap labor force is the primary reason for inward FDI. Moreover, we find no direct relationship between the political events in Ukraine and the investment stock dynamics as the estimated parameters on the indices of democracy, autocracy, polity, and political stability show no statistical significance.
Reference42 articles.
1. Akulava, M., Vakhitova, G. (2010), The impact of FDI on firm's performance across sectors: evidence from Ukraine, BEROC Working Paper No. 010.
2. Berger, M., Diez, J.R. (2008), Can host innovation systems in late industrializing countries benefit from the presence of transnational corporations? Insights from Thailand's manufacturing industry, European Planning Studies, Vol. 16, No. 8, pp. 1047–1074.
3. Busse, M., Hefeker, C. (2007), Political risk, institutions and foreign direct investment, European Journal of Political Economy, Vol. 23, No. 2, pp. 397–415, doi: 10.1016/j.ejpoleco.2006.02.003
4. Carmignani, F. (2003), Political instability, uncertainty and economics, Journal of Economic Surveys, Vol. 17, No. 1, doi: 10.1111/1467-6419.00187
5. Cieślik, A. (2013), Horizontally integrated MNE and plant heterogeneity, Bank i Kredyt, Vol. 44, No. 6, pp. 605–622.
Cited by
5 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献