The Role of Risk as an FDI Barrier to Entry during Transition: The Case of Bulgaria

Aristidis Bitzenis and John Marangos

Journal of Economic Issues, 2008, vol. 42, issue 2, 499-508

Abstract: This article reports the results of a questionnaire that was designed to extract information regarding the determinants of foreign direct investment (FDI) in Bulgaria during the post-communist decade of the 1990s. We surveyed established multinationals in Bulgaria in order to discover their perceptions regarding the business environment. From the results of the survey, 52% of the total number of foreign investors stated that their investment in Bulgaria is of high risk. We explored whether the high risk environment in Bulgaria has been affected either by the foreign entry mode, the prior trade relations, the invested amount, the sector that the multinational operates, and finally the origin of the MNE.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:mes:jeciss:v:42:y:2008:i:2:p:499-508

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DOI: 10.1080/00213624.2008.11507159

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