The relationship among macroeconomic indicators and foreign direct investments in Greece, Cyprus, Portugal and Ireland: A strategic outlook

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Abstract

The main purpose of undertaking this study is to examine the relationship between macroeconomic variables and foreign direct investments. The study includes a statistical analysis of the relationship between macroeconomic indicators on one hand, and foreign direct investment on the other (Roukanas, 2020), for the period 2010–2015, in Greece, Cyprus, Portugal, and Ireland. The aforementioned analysis focused on European Union (EU) member states that were hit by the global economic recession and received assistance from the Institutions. The criterion for their selection was the implementation of fiscal adjustment programmes with the aim of enabling their stabilisation and recovery. The data that will be used were drawn from the statistical databases of the EU, where official data are published and processed with the use of the Stata statistical software. Initially, various combinations of models were explored and the most appropriate ones were selected. These selected models show the dependent variables to be dynamically influenced by the independent variables and provide an opportunity for future research to enrich the model with additional interdependent variables showing variations in the findings.

Keywords: Foreign Direct Investment, FDI, Gross Domestic Product, GDP, Inflation, Unemployment, Stata

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: F23, O10, O16

Received: 19.01.2024
Accepted: 01.07.2024
Published online: 04.07.2024

How to cite this paper: Efthimiou, S. G. (2024). The relationship among macroeconomic indicators and foreign direct investments in Greece, Cyprus, Portugal and Ireland: A strategic outlook. Corporate & Business Strategy Review, 5(3), 117–123. https://doi.org/10.22495/cbsrv5i3art11