FDI, the Crisis and Competitiveness of Transition Economies

Marjan Svetličič and Aljaz Kuncic

Journal of Balkan and Near Eastern Studies, 2013, vol. 15, issue 3, 260-279

Abstract: We evaluate the impact of the crisis on foreign direct investment (FDI) and differences between selected transition and Western economies regarding their policies and attitudes towards FDI. Transition economies have been affected by the crisis more than Western countries, but remain more optimistic about the current and future role of FDI's influence on competitiveness, and also see FDI as a relatively more important instrument for enhancing competitiveness than their Western counterparts. In addition, the investment promotion agencies seemingly have a completely different set of excelling factors in transition economies in comparison to their Western counterparts. Transition and Western countries differ in terms of their need, environments and attitudes when it comes to FDI. Thus, one of the crisis-related implications is the need to tailor the FDI policy and promotion approach to each group's specific needs.

Date: 2013
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DOI: 10.1080/19448953.2013.789315

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