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COMPETITIVENESS AS DETERMINANT OF FOREIGN DIRECT INVESTMENTS IN CENTRAL AND EASTERN EUROPEAN COUNTRIES

Oana Popovici and Adrian Cantemir Calin

Revista Economica, 2012, vol. Supplement, issue 1, 658-666

Abstract: The objective of this paper is to examine the impact of competitiveness on the location decision for foreign direct investments (FDI) in seven Central and Eastern European (CEE) countries. We compose a competitiveness index based on three indicators of the European Commission scoreboard for macroeconomic imbalances and the GDP per capita. We report a positive relationship between the competitiveness indicator and FDI. Therefore, we develop an attractiveness matrix that ranks the CEE countries according to their competitiveness in 2000, 2007 and 2010. We find that after the crisis, the FDI are moving towards the most competitive destinations.

Date: 2012
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