This paper investigates the impact of the increased off-shoring in business and manufacturing to Central and Eastern Europe (CEE). Since the off-shoring process is a relatively new activity, there is no precise definition of how to measure its direct impact on a country’s economy. Thus the study is dedicated to identify the main economic factors associated with off-shoring and to examine their impact on the economic growth. The study has used a dataset on economic characteristics for 9 CEE countries (Estonia, Latvia, Lithuania, Poland, Czech Republic, Hungary, Romania, Slovenia, Croatia) during the time period of 2000 - 2008. After applying fixed and random effects econometric model to the panel data for 9 countries, empirical results showed that FDI inflows that enter the country with offshoring processes have a positive influence on the GDP of those countries. Additionally, exports of manufactured products and ICT services are also shown to have a positive influence on GDP. At the same time, indigenous investments and private consumption do have a stronger impact on economic growth compared to foreign direct investments and exports, respectively.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:kth-77099 |
| Date | January 2011 |
| Creators | Buchenko, Olga |
| Publisher | KTH, Samhällsekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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