Do Institutions Matter for FDI? Evidence from Central and Eastern European Countries

Cem Tintin

Research output: Chapter in Book/Report/Conference proceedingConference paper


This study investigates the determinants of FDI inflows in the Central and Eastern European (CEEC) by incorporating the traditional factors and institutional variables over 1996-2009. The study further identifies whether and how these determinant factors differ across three sectors (primary, manufacturing, and services) by using a disaggregated sectoral FDI dataset. In the study, the role of institutions is investigated with a set of selected institutional indices: economic freedoms, state fragility, political rights, and civil liberties. The estimation results verify the economically significant effect of GDP size, openness, EU membership, and institutions (especially economic freedoms) on FDI inflows in the CEEC. The results also reveal the existence of notable differences in the determinant factors across sectors that should be taken into account by policy-makers in designing the FDI strategies of the CEEC.
Original languageEnglish
Title of host publicationProceedings of ETSG 2011
Number of pages25
Publication statusPublished - 10 Sep 2011
EventUnknown -
Duration: 10 Sep 2011 → …


Period10/09/11 → …


  • FDI
  • Institutions


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