The effects of transition and political instability on foreign direct investment inflows: Central Europe and the Balkans

Josef Brada, Ali Kutan and Taner Yigit

No B 33-2004, ZEI Working Papers from University of Bonn, ZEI - Center for European Integration Studies

Abstract: This paper examines the effect of transition and of political instability on FDI flows to the transition economies of Central Europe, the Baltics and the Balkans. We find that FDI to transition economies unaffected by conflict and political instability exceed those that would be expected for comparable West European countries. Success with stabilization and reform tends to increase FDI inflows. In the case of Balkan countries, conflict and instability have reduced FDI inflows below what one would expect for comparable West European countries, and reform and stabilization failure have further reduced FDI to the region. Thus the economic costs of instability in the Balkans have been quite high.

Keywords: foreing direct investment; transition; political instability; political risk (search for similar items in EconPapers)
JEL-codes: F21 F23 P52 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (19)

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Related works:
Working Paper: Effects of Transition and Political Instability on Foreign Direct Investment Inflows: Central Europe and the Balkans (2004)
Working Paper: The Effects of Transition and Political Instability On Foreign Direct Investment Inflows: Central Europe and the Balkans (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zeiwps:b332004

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