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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.
Int. J. Financial Stud. 2018, 6(2), 55; https://doi.org/10.3390/ijfs6020055
Received: 23 March 2018 / Revised: 20 May 2018 / Accepted: 24 May 2018 / Published: 29 May 2018
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
MDPI and ACS Style

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. https://doi.org/10.3390/ijfs6020055

AMA Style

Bayar Y, Gavriletea MD. Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality. International Journal of Financial Studies. 2018; 6(2):55. https://doi.org/10.3390/ijfs6020055

Chicago/Turabian Style

Bayar, Yilmaz, and Marius Dan Gavriletea. 2018. "Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality" International Journal of Financial Studies 6, no. 2: 55. https://doi.org/10.3390/ijfs6020055

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