Quality of institutions, foreign direct investments and economic growth: Empirical evidence from Balkan economies

This paper analyzes the relationship between institutions, foreign direct investment (FDI) and economic growth in the Western Balkans region. We use a difference-indifference method to evaluate the impact of institutions on attracting FDI and promoting economic growth and we find evidence, which sup...

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Bibliographic Details
Published inECONOMICUS Vol. 22; no. 1; pp. 43 - 52
Main Authors Topi, Kevin, Xhepa, Selami
Format Journal Article
LanguageEnglish
Published Shtëpia botuese “UET Press” 2023
Publishing House “UET Press”
Subjects
Corruption - Transparency - Anti-Corruption
Economic development
Economic policy
Financial Markets
International relations/trade
Foreign Direct Investment
Western Balkans
European Union
Institutions
Economic Growth
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Summary:This paper analyzes the relationship between institutions, foreign direct investment (FDI) and economic growth in the Western Balkans region. We use a difference-indifference method to evaluate the impact of institutions on attracting FDI and promoting economic growth and we find evidence, which support that quality of institutions is an important policy variable. The research shows that institutions play a key role in determining economic growth and attracting foreign investment. This highlights the importance of creating and maintaining inclusive institutions that promote the rule of law, control of corruption, and regulatory quality, which can lead to increased economic development and investment.
ISSN:2223-6295
2958-8901
DOI:10.58944/suvu3944