Foreign Direct Investments and Economic Transition in Central and Eastern Europe

Olivier Hueber () and Christian Longhi

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Abstract: This paper investigates the relationships between foreign direct investments (FDI) and the economic restructuring in Central and Eastern European countries (CEEC) by focusing on the Ukrainian case. First, we examine how FDI affect economic growth utilising data on FDI flows from several central and east countries in transition. We assert that FDI is an important vehicle for the transfer of technology and for this reason contributing significantly to economic growth. Second, we argue that for several countries of Eastern Europe and especially for Ukraine, the share of firms more or less externally controlled by foreign investors is too small to generate new positive externalities and new dynamics. Therefore, it becomes necessary to study the predominance of complementary effects with domestic firms.

Date: 2002
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Published in J.W. Owsinski ed. Transition and Transformation Problems and Models, The Interface Institute, pp.125-140, 2002

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Working Paper: Foreign direct investments and economic transition in Central and Easter Europe (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00819138

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