What the study found
Foreign direct investment (FDI) was associated with long-run economic expansion across Poland, Ukraine, and Vietnam, but the short-run FDI-growth relationship differed by country.
Why the authors say this matters
The authors suggest that FDI may support growth through channels such as infrastructure development, job creation, and technology transfer, but that outcomes depend on institutional stability, investment composition, and absorptive capacity. They also conclude that policy should strengthen institutions, improve investment quality, and reduce regional disparities.
What the researchers tested
The study used data from 2004 to 2024 and combined quantitative and qualitative comparative analysis. It examined country-level annual time series for Poland, Ukraine, and Vietnam, looking at how FDI related to GDP growth and growth channels, while also considering risks such as economic dependence, regional concentration of investment, and uneven development.
What worked and what didn't
The quantitative results indicated that FDI co-moved with long-run economic expansion in all three cases. Poland and Vietnam showed mixed correlations between FDI inflows and GDP growth, suggesting that short-run growth variation was shaped by other macroeconomic and policy factors beyond investment volumes alone.
What to keep in mind
The short-run FDI-growth relationship was sensitive to shocks and model specification. Ukraine’s experience showed that conflict conditions could destabilise the relationship, although a positive association was also seen in non-outlier periods. The abstract does not provide additional limitations beyond these points.
Key points
- FDI was associated with long-run economic expansion in Poland, Ukraine, and Vietnam.
- The short-run FDI-growth relationship varied by country and was sensitive to shocks and model specification.
- Poland and Vietnam showed mixed correlations between FDI inflows and GDP growth.
- Ukraine’s conflict conditions destabilised the FDI-growth relationship, though positive associations appeared in non-outlier periods.
- The authors link FDI’s effects to institutions, sectoral composition, and absorptive capacity.
Disclosure
- Research title:
- FDI co-moves with long-run growth in Poland, Ukraine, and Vietnam
- Authors:
- Roman Chornyi, Nelya Chorna
- Institutions:
- West Ukrainian National University
- Publication date:
- 2026-01-30
- OpenAlex record:
- View
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