THE INFLUENCE OF SOCIAL EFFECTS ON STOCKS OF DIRECT INVESTMENT IN EASTERN EUROPEAN COUNTRIES

Abstract

Currently, the countries of Eastern Europe and the European Union are focused on economic development. And this is governed by respect for environmental rules and human rights. For this reason, the UN has set 17 sustainable development goals, which is in fact a universal program used on a global scale. These SDGs manage 3 types of effects, namely economic, environmental and social. In recent years, developing countries have attracted a fairly high level of direct investment that has contributed to economic growth. In general, direct investment is positively correlated with the level of growth or the cost of labor. Thus, the influence of economic effects in attracting direct investments is usually pursued. In this paper we want to see how the social effects of sustainable development influence the size of direct investment stocks in Eastern European countries. We will analyze the countries of Eastern Europe and which are members of the European Union in the period 1995-2020 and we will use the Eviews program. Thus, following the running of the multiple regression equation, we found that in attracting direct investments in Eastern Europe in the period 1995-2020, the social effects have a positive influence, over 40% of the total stocks.

Keywords

• stock of direct investments
• sustainable development
• social effect
• economical growth
• est europe