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Int. J. Financial Stud. 2018, 6(2), 55; https://doi.org/10.3390/ijfs6020055

Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality

1
Faculty of Economics and Administrative Sciences, Usak University, 64100 Usak, Turkey
2
Faculty of Business, Department of Business, Babeş-Bolyai University, 400084 Cluj-Napoca, Romania
*
Author to whom correspondence should be addressed.
Received: 23 March 2018 / Revised: 20 May 2018 / Accepted: 24 May 2018 / Published: 29 May 2018
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Abstract

Foreign direct investment (FDI) inflows have increased considerably in the globalized world as of the mid-1980s. The main objective of this research is to analyze interactions between FDI inflows and financial sector development in Central and Eastern European Union countries between 1996 and 2015 with panel data analysis. Our findings reveal that there is no cointegrating relationship among FDI inflows, investments of foreign portfolio, and the development of financial sectors, but there is a one-way causality from development of financial sectors to FDI inflows over the short run. View Full-Text
Keywords: financial development; foreign direct investment inflows; foreign equity investments; panel data analysis financial development; foreign direct investment inflows; foreign equity investments; panel data analysis
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
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Bayar, Y.; Gavriletea, M.D. Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality. Int. J. Financial Stud. 2018, 6, 55.

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