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Economic Integration and FDI in Transition Economies: What Can We Learn from German Data?

Claudia Buch and Farid Toubal

Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, 2003, vol. 72, issue 4, 594-610

Abstract: The opening up of Central and Eastern Europe has provided new investment opportunities for German investors. At the same time, importing capital from abroad can be an efficient mechanism towards increased factor accumulation for the accession states to the European Union. In this paper, we study the development of German FDI into the accession states from an aggregated, sectoral, and a firm-level perspective. We assess whether patterns of FDI into the transition economies confirm recent theories of FDI and whether we find evidence that the heterogeneity of firms matters for FDI decisions.

Date: 2003
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Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research is currently edited by Marcel Fratzscher, Martin Gornig, Claudia Kemfert, Alexander Kritikos, Stefan Liebig, Lukas Menkhoff, Dorothea Schäfer, Bernhard Emunds, Thomas Gehrig, Horst Gischer, Hans-Helmut Kotz, Claus Michelsen, Doris Neuberger, Andreas Pfingsten and Andreas Stephan

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