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The Impact Of Fdi And Trade Openness On The Economic Growth Of The Transition Economies, Regina Castro

Empirical Economic Bulletin, An Undergraduate Journal

This paper examines effects of FDI inflows and trade openness on economic growth of three former Soviet Union economies: Kazakhstan, Armenia and Ukraine. The study uses a regression model that incorporates data sets for the period from 1992 to 2011 obtained from the World Bank. The regression result indicates that FDI inflows are positively correlated to the economic growth of the transition economies. However, impact of FDI would vary for each specific country depending on the degree of capacity of the host country to use FDI efficiently. Trade openness has also a positive effect on the real GDP per capita …