Transformations in
Business & Economics
- © Kaunas Faculty of Humanities
Vilnius University, 2002
Article
Foreign Direct Investment Patterns and Consequences in Central and Eastern Europe, 1990-2000
Alojzy Z. Nowak, Jeff W. Steagall
ABSTRACT. This paper examines the real respond of foreign direct investment to above incentives in terms of FDI patterns and number of FDI in Central and Eastern Europe during the transitional, post-soviet decade. Using data from the European bank for Reconstruction and development, the paper describes also the macroeconomic setting in which FDI decisions were made during this period. After providing and overview of regional activity, the paper focuses on the Czech Republic, Poland, and Hungary, which receive together approximately 75% of regional FDI. The consequences of the FDI pattern are then analyzed on both country-specific and regional bases, as well as the context of global FDI flows.
KEYWORDS: direct investment, privatisation, socio-economic transition, main determinants of FDI in CEEC.