Conclusions: Prospects for FDI-Led Development in a Post-crisis World

Balazs Szent-Ivanyi ()

Chapter 11 in Foreign Direct Investment in Central and Eastern Europe, 2017, pp 241-257 from Palgrave Macmillan

Abstract: Abstract This chapter explores the possibilities CEE countries have for convergence with the development paths of the Western countries in a post-crisis setting. It argues that the current way in which the CEE countries have integrated into the global value chains of multinational corporations seems unlikely to provide strong further momentum for such convergence. Processes of “upgrading,” which many have perceived as the solution to longer term national development driven by FDI, are unlikely to meaningfully support convergence as these processes go hand-in-hand with decreasing shares of value capture by local affiliates. The CEE countries are stuck in a “low value capture trap” and require policies which foster the emergence of innovative, CEE-based global value chains in order to exit this trap.

Keywords: Foreign Direct Investment; Locational Advantage; Lead Firm; Foreign Direct Investment Flow; Capture Trap (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

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:stuchp:978-3-319-40496-7_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319404967

DOI: 10.1007/978-3-319-40496-7_11

Access Statistics for this chapter

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