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Privatization, Foreign Acquisition and the Motives for FDI in Eastern Europe

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Abstract

The paper examines the motives for FDI in Eastern Europe by analysing foreign entry by acquisition facilitated by privatization programmes. Firm-level characteristics encouraging entry through their effect on expected profits, as well as industry level determinants are considered. The data are drawn from the list of the 500 largest companies in Polish manufacturing and span privatizations between 1993 and 1998. The results point to market-seeking rather than resource-seeking motives behind the location decisions of foreign investors.

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Author information

Authors and Affiliations

  1. Department of Economics, University of Leicester, LE1 7RH, Leicester, UK

    Barbara M. Roberts

  2. University of Nottingham, Nottingham, UK

    Steve Thompson

  3. Academy of Economics, Cracow, Poland

    Katarzyna Mikolajczyk

Authors
  1. Barbara M. Roberts
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  2. Steve Thompson
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  3. Katarzyna Mikolajczyk
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Corresponding author

Correspondence to Barbara M. Roberts.

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JEL no.

F23, L33, P31

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Roberts, B., Thompson, S. & Mikolajczyk, K. Privatization, Foreign Acquisition and the Motives for FDI in Eastern Europe. Rev World Econ 144, 408–427 (2008). https://doi.org/10.1007/s10290-008-0154-z

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  • DOI: https://doi.org/10.1007/s10290-008-0154-z

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