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Foreign Direct Investment and the Development of the Automotive Industry

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Dependent Growth: Foreign Investment and the Development of the Automotive Industry in East-Central Europe

Abstract

This chapter analyzes foreign direct investment (FDI) in the automotive industry of East-Central Europe (ECE), examining trends and patterns since the 1990s with a focus on the 2000s and especially the period after the 2008–2009 economic crisis. I start with a discussion of the position of ECE in the global and European division of labor in the automotive industry. This is followed by an overview of FDI trends in the ECE automotive industry, including an evaluation of automotive FDI trends in individual ECE countries. Finally, I consider the future prospects of automotive FDI and its long-term developmental effects in ECE.

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Notes

  1. 1.

    In this book, East-Central Europe (ECE) denotes the region composed of former state socialist countries located in Europe outside the former Soviet Union, which have automobile assembly plants, i.e. Bulgaria, Czechia, Hungary, Poland, Romania, Serbia, Slovakia and Slovenia. Central Europe (CE) denotes the region composed of Czechia, Hungary, Poland, Slovakia and Slovenia. Central and Eastern Europe (CEE) denotes the broader region composed of East-Central Europe and the European part of the former Soviet Union (Belarus, Estonia, Latvia, Lithuania, Moldova and Ukraine).

  2. 2.

    Together with Russia and Ukraine, ECE accounted for 27.8% of the total 2015 European production of cars (OICA 2016).

  3. 3.

    The population of less developed countries increased from 4.7 billion in 1997 to 6.1 billion in 2016. During the same period, the population of more developed countries grew from 1.1 billion to 1.25 billion (PRB 1997, 2016).

  4. 4.

    950 Including the Baltic states.

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Authors and Affiliations

  1. Department of Geography and Geology, University of Nebraska at Omaha, Omaha, NE, USA

    Petr Pavlínek

  2. Department of Social Geography and Regional Development, Faculty of Science, Charles University, Prague, Czech Republic

    Petr Pavlínek

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Pavlínek, P. (2017). Foreign Direct Investment and the Development of the Automotive Industry. In: Dependent Growth: Foreign Investment and the Development of the Automotive Industry in East-Central Europe. Springer, Cham. https://doi.org/10.1007/978-3-319-53955-3_1

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