Is There an Asymmetric Effect Due to Foreign Direct Investment on the Exports of the Manufacturing and Service Sectors of Central, Eastern, and South-Eastern European Countries?

This study estimates the asymmetric effect of foreign direct investment on the exports of the manufacturing and service sectors of 11 Central, Eastern, and South-Eastern (CESEE) countries, using the nonlinear ARDL model, over the period of 1996–2022. The results show an asymmetric effect due to mergers & acquisitions (M&A) on the exports of 3 countries, while greenfield foreign direct investment (GFDI) has an impact on the exports of 4 of the 17 manufacturing sectors. There is also an asymmetric effect due to M&A on the exports of 5 out of the 6 service sectors.