Foreign Direct Investment in New EU Member States from Central and Eastern Europe: An Investment Development Path Perspective

Marian Gorynia, Jan Nowak, Piotr Tarka and Radosław Wolniak

Chapter 4 in Internationalization of Emerging Economies and Firms, 2012, pp 64-86 from Palgrave Macmillan

Abstract: Abstract The interface and interplay between inward and outward foreign direct investment (IFDI and OFDI), coupled with economic development, constitutes the essence of the Investment Development Path (IDP) paradigm, the central theoretical model in this study. In the context of this model, a comparative analysis is conducted of the IDPs of ten Central and Eastern European (CEE) countries, all members of the European Union (EU). They include Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. This group of countries shows relative homogeneity in terms of sharing the same communist heritage, common experience in establishing and developing a market economy, and in acceding to the EU: with eight countries joining the EU in 2004 and two (Bulgaria and Romania) in 2007. All of these countries show relative homogeneity in terms of many socio-economic variables (Niroomand and Nissan, 2007) and have exhibited a tendency to economic convergence over the last two decades (Amplatz, 2003; Matkowski and Próchniak, 2007). At the same time though, there are considerable differences between them in their level of development and in completion of the transition process to the market-led system. In fact, one can distinguish more homogenous subregions in the CEE-10 group (see e.g. Caporale et al., 2009), namely the Central European countries (the CEE-5: the Czech Republic, Hungary, Poland, Slovakia and Slovenia), the Baltic countries (the B-3: Estonia, Latvia and Lithuania), and the two Balkan countries located in south-eastern Europe (the SEE-2: Bulgaria and Romania).

Keywords: European Union; Foreign Direct Investment; European Union Member State; Outward Foreign Direct Investment; Central European Country (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-36366-3_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230363663

DOI: 10.1057/9780230363663_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().