Off-shoring’s Impact on Economic Growth of Developing Countries in Central and Eastern Europe.
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
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.
Place, publisher, year, edition, pages
2011. , 47 p.
Key words: off-shoring, Central and Eastern Europe, foreign direct investment, export, total factor productivity
IdentifiersURN: urn:nbn:se:kth:diva-77099OAI: oai:DiVA.org:kth-77099DiVA: diva2:491490
Subject / course
Economics of Innovation and Growth
Degree of Master - Economics of Innovation and Growth