Abstract:
FDI has become a importance source of external finance for several transitional economies, in particular those in Central Europe.The paper analyses determinants of FDI in Central Europe by providing econometric analysis. We examine the flows of FDI into the Czech and Slovak Federal Republics (CSFR), Hungary and Poland and attempt to explain both the factors that explain why foreign investors have moved into these markets so rapidly and why Hungary and the CSFR have attracted more FDI than Poland.