Analysis of the Pattern of US FDI Inflow into CEE region and a Study of the Impact of US FDI on the Private Consumption Expenditure of Czech Republic

Abstract

The study presented has a dual objective. The first one being to analyse the pattern of inflow of FDI from The United States into the CEE region for a period of thirty years (1990 - 2020). The countries from the CEE region that is studied here are Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland , Romania, Slovenia and Slovakia. The second objective of the study is to understand the impact US FDI inflow has on the Private Consumption Expenditure of Czech Republic for the same time period. I gathered data on twelve macroeconomic variables of the CEE region in the past thirty years. In order to study the pattern of the FDI inflow, the factors that attracted the huge amount of FDI has been taken as the primary material. Analysis has been conducted individually on each factor that possibly is an FDI attractor. The first objective is concluded with a Panel Data regression analysis of all the factors that influenced the FDI inflow from US to the CEE region over the past thirty years. The results of the analysis reveal that in the case of the US FDI inflow to the CEE region , it can be mirrored in the Universal Model of Factors Determining FDI. In order to fulfil the second objective, a Time-series regression analysis is conducted between the Private Consumption Expenditure and the...