| FDI AND UNCERTAINTY: AN EMPIRICAL APPROACH USING GREEK AND HUNGARIAN DATA |
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| by |
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| Anastasios G. Karasawoglou, TEI of Kavala |
| Konstantinos P. Katrakilidis, Aristotle University of Thessaloniki |
| Nikolaos M. Tabakis, Aristotle University of Thessaloniki & TEI of Thessaloniki |
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| JEL classification : F210 |
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| Abstract |
| The object of this paper is to investigate empirically the macroeconomic determinants of foreign direct investment (FDI) inflows in Greece and Hungary and to shed light on the matter of exchange rate and inflation uncertainties affecting the FDI decisions. The empirical analysis employs GARCH techniques to model the uncertainty variables as well as Granger-Causality tests in conjunction with variance decompositions to detect the relative contribution of the explanatory factors on the FDI decisions. |
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