What the study found
The study found that foreign direct investment (FDI, investment from businesses or entities in one country into another country) was associated with long-run economic expansion across Poland, Ukraine, and Vietnam. In the short run, the FDI-growth relationship differed by country and was not consistent.
Why the authors say this matters
The authors conclude that FDI may support growth through infrastructure development, job creation, and technology transfer, but they also note risks such as economic dependence, regional concentration of investment, and uneven development. They emphasize that stronger institutions, better investment quality, and reduced regional disparities may help make growth more inclusive and resilient.
What the researchers tested
The researchers used a mixed-method approach that combined quantitative and qualitative comparative analysis. They analyzed country-level annual time series from 2004 to 2024 for Poland, Ukraine, and Vietnam, examining how FDI was associated with GDP growth and related growth channels.
What worked and what didn't
The quantitative results indicated that FDI co-moved with long-run economic expansion in all three cases. However, the short-run relationship varied: Poland and Vietnam showed mixed correlations between FDI inflows and GDP growth, and Ukraine’s pattern was destabilized by conflict conditions, though a positive association appeared in non-outlier periods.
What to keep in mind
The abstract notes that the short-run relationship was sensitive to shocks and model specification. It also indicates that the findings are based on three country cases over 2004 to 2024, and that qualitative evidence was used alongside the quantitative analysis.
Key points
- FDI was associated with long-run economic expansion in Poland, Ukraine, and Vietnam.
- Short-run FDI-growth links differed by country and were sensitive to shocks and model choice.
- Poland and Vietnam showed mixed correlations between FDI inflows and GDP growth.
- Ukraine’s FDI-growth relationship was destabilized by conflict conditions.
- The authors highlight institutions, sectoral composition, and absorptive capacity as relevant to whether FDI supports growth.
Disclosure
- Research title:
- FDI showed mixed links to growth in Poland, Ukraine, and Vietnam
- Authors:
- Roman Chornyi, Nelya Chorna
- Institutions:
- West Ukrainian National University, West Ukrainian National University
- Publication date:
- 2026-01-30
- OpenAlex record:
- View
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