Determinants of Foreign Direct Investments in Agriculture of Danube Region

19 Pages Posted: 20 Dec 2017

See all articles by Radovan Kastratovic

Radovan Kastratovic

Faculty of Economics, University of Belgrade

Zorica Vasiljević

University of Belgrade - Faculty of Agriculture

Date Written: December 14, 2017

Abstract

The research investigates the determinants of foreign direct investments in agriculture in the countries of Danube region. Pooled model of agricultural foreign direct investment inflows based on the theoretical framework of Ownership Location Internalization paradigm was formulated and estimated by using ordinary least squares method and panel data for the period from 2009 to 2016. The results suggest that the foreign direct investments in agriculture of the region are primarily resource-seeking, although market-seeking investments are also present. There is also evidence of sector-specific impact of certain frequently examined determinants which contradict theoretic expectations and highlight the importance of the sector-level studies of foreign direct investment. The research adds to the limited literature concerning foreign direct investment determinants in the context of agriculture and has significant implications for the agricultural and foreign investment policymakers.

Keywords: foreign direct investments, determinants, agriculture

JEL Classification: F21, Q17, P32

Suggested Citation

Kastratovic, Radovan and Vasiljević, Zorica, Determinants of Foreign Direct Investments in Agriculture of Danube Region (December 14, 2017). Available at SSRN: https://ssrn.com/abstract=3089168 or http://dx.doi.org/10.2139/ssrn.3089168

Radovan Kastratovic (Contact Author)

Faculty of Economics, University of Belgrade ( email )

Kamenicka 6
11000 Belgrade
Serbia

Zorica Vasiljević

University of Belgrade - Faculty of Agriculture ( email )

6 Nemanjina Str
Zemun, 11080
Serbia

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