Monthly Report No. 11/2022 - FDI in Central, East and Southeast Europe

Olga Pindyuk, Roman Stöllinger and Zuzana Zavarska

No 2022-11, wiiw Monthly Reports from The Vienna Institute for International Economic Studies, wiiw

Abstract: ​This issue of the wiiw Monthly Report replaces our earlier series of the wiiw FDI Report. FDI in Central, East and Southeast Europe Chart of the month Growing role of China as investor in CESEE by Olga Pindyuk Russia’s war in Ukraine causes a reversal of FDI trends by Olga Pindyuk Russia’s war in Ukraine interrupted the recovery of FDI in CESEE and has prompted significant shifts in the FDI structure. Russia has witnessed the large-scale divestment of foreign capital, and FDI inflows into EU-CEE have also suffered; meanwhile, in the second quarter the Western Balkans and Turkey recorded higher inflows on an annual basis. Some parts of the CESEE region may be able to benefit from accelerated green transition and the relocation of companies away from the war zone. No sign of functional upgrading in EU-CEE countries so far by Roman Stöllinger and Zuzana Zavarská The types of greenfield FDI projects that the EU countries of Central and Eastern Europe (EU-CEE) have been able to attract over the past two decades are consistently different from those in the Western EU member states. Greenfield FDI coming into EU-CEE is heavily skewed toward routine production activities; meanwhile FDI in the remaining activities involved in the production process homes in on other EU countries. This pattern of functional specialisation by EU-CEE is sub-optimal and requires a rethinking of FDI policy to enable functional diversification. Monthly and quarterly statistics for Central, East and Southeast Europe

Keywords: greenfield investments; FDI inflows; FDI stocks, functional specialisation, fabrication activities, headquarter activities (search for similar items in EconPapers)
Pages: 48 pages including 2 Tables and 35 Figures
Date: 2022-11
New Economics Papers: this item is included in nep-cis, nep-fdg and nep-int
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