Is There an Asymmetric Effect Due to Foreign Direct Investment on the Exports of the Manufacturing and Service Sectors of Central, Eastern, and South-Eastern European Countries?

ABSTRACT

This study estimates the asymmetric effect of foreign direct investment on the exports of the manufacturing and service sectors of 11 Central, Eastern, and South-Eastern (CESEE) countries, using the nonlinear ARDL model, over the period of 1996–2022. The results show an asymmetric effect due to mergers & acquisitions (M&A) on the exports of 3 countries, while greenfield foreign direct investment (GFDI) has an impact on the exports of 4 of the 17 manufacturing sectors. There is also an asymmetric effect due to M&A on the exports of 5 out of the 6 service sectors.

KEYWORDS:

• Asymmetry
• export
• FDI
• sectors
• symmetry

JEL CLASSIFICATION:

• F14
• F21

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Data Availability Statement

Data available within the article or its supplementary materials.

Additional information

Notes on contributors

Safet Kurtovic

Safet Kurtović received his Ph.D. in economics from the University of Belgrade in 2002. He is a professor at the Faculty of Management and Business Economics, University of Travnik. His research focus is on international economics, international business, international trade, and applied economy. He has published over 100 scientific papers in leading journals and 11 books and over a dozen studies and research projects.

Nehat Maxhuni

Nehat Maxhuni received his Ph.D. in economics from the Alfa University in 2012. He is an associate professor at the Faculty of Engineering Management, University Union - Nikola Tesla. He research interests include accounting and finance. He has published over 60 scientific papers in leading journals and seven books and over a dozen studies and research projects.

Blerim Halili

Blerim Halili received his Ph.D. in economics from the Alfa University in 2009. He is an associate professor at the Faculty of Engineering Management, University Union - Nikola Tesla. His research interests include theoretical economics, macroeconomics, and international finance. He has published over 50 scientific papers in leading journals and five books and over a dozen studies and research projects.

Arta Maxhuni

Arta Maxhuni received her MSc in economics from the University of Prishtina. She is a chief of Deloitte, R. Kosova. Her research interests include accounting and finance, particularly in the R. Kosova and Southeast Europe.