Foreign Direct Investments and Home Country’s Institutions: The Case of CEE Countries

Design/Methodology/Approach: To achieve the assumed research aim, an econometric power panel model illustrating the interdependencies between the natural logarithms of the CEE countries' outward FDI per capita stocks values and the levels of natural logarithms of their explanatory variables, which were the key home country's institutional factors, during or at the end of the years 2004-2018, that constituted a balanced data panel, were used. The slope coefficients of the model indicated the percentage change the dependent variable (i.e., the value of the OFDI stocks of CEE countries growth pace) changes if a given exogenous institutional variable decreases or grows by 1.0%, which enables to determine if the scale of outward FDI from the CEE region was significantly determined in the examined period by the considered key home country's institutional factors.