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Latecomers May Be Admitted: Foreign Direct Investment Between the CEE Countries

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Foreign Direct Investment in Central and Eastern Europe

Part of the book series: Studies in Economic Transition ((SET))

Abstract

Foreign direct investment among the Central and Eastern European countries has grown considerably recently, but it is still well below the level of what can be expected on the basis of the inherited economic and personal ties, levels of economic development and geographic proximity of these countries. After briefly describing data problems, the chapter shows the main characteristics of intra-CEE FDI, and its high concentration in terms of home and host countries, which is partly due to a few large investment projects, in certain cases related to privatisation. The validity of the investment development path model is shown, which indicates that further growth of intra-regional FDI may be expected.

The research in this chapter was supported by the Hungarian Research Fund (OTKA), grant no. 109294. The author is grateful to Kálmán Kalotay and Gergő Medve-Bálint for their comments on an earlier version.

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Notes

  1. 1.

    Furthermore, it is relevant from the point of view of future research (based on case studies of foreign investor companies) as well, as it indicates changes in the O-advantages and motivations of indigenous companies when they invest abroad.

  2. 2.

    For details see: http://ccsi.columbia.edu/publications/emgp/ or Sauvant et al. (2011).

  3. 3.

    However, we assume that similarly to trade statistics (Fertő and Soós 2009), FDI data problems are on average not more prevalent in CEE than in other EU or developed countries.

  4. 4.

    For the list of major investors in Bulgaria see: http://www.investbulgaria.com/MajorInvestorsInBulgaria.php.

  5. 5.

    The impact of the crisis on FDI flows to CEE countries is analysed among others by Filippov and Kalotay (2009).

  6. 6.

    Tolentino (1993) on the other hand found no support for the model; however, he used FDI flow instead of stock data.

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  1. Centre of Economic and Regional Studies of the Hungarian Academy of Sciences, Budapest, Hungary

    Magdolna Sass

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  1. Aston Centre for Europe, Aston University, Birmingham, United Kingdom

    Balázs Szent-Iványi

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Sass, M. (2017). Latecomers May Be Admitted: Foreign Direct Investment Between the CEE Countries. In: Szent-Iványi, B. (eds) Foreign Direct Investment in Central and Eastern Europe. Studies in Economic Transition. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-40496-7_5

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  • DOI: https://doi.org/10.1007/978-3-319-40496-7_5

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