Foreign direct investment in central eastern Europe. Case studies of firms in transition

Abstract:

This study involves twelve case studies of western firms' direct investments into state-owned enterprises in transition economies. Four case studies were undertaken in each of Bulgaria, the Czech Republic and Slovenia aiming to throw light on the determinants of foreign direct investment (FDI) into the region and upon its impact on the host economies. The studies include major firms such as Skoda and Danone, as well as smaller ventures, and cover the same manufacturing sectors for each country.
The book begins with an introductory chapter summarising the findings and providing a comparative overview to the twelve cases. It considers the differences in preconditions to reform and transition policies within each country and analyses foreign direct investment into these transition economies, indicating the scale of the flows as well as the rationale and possible impact. The use of a common analytical framework allows comparisons and assessment of: the role of country, sector, technology and firm-specific characteristics in determining the nature and pattern of FDI; the potential implications of FDI for the competitiveness of the investing firms; the impact of infusions of capital investments, technology and managerial resources on the host economies; and the policy implications for host countries and relevant international institutions.
This book is part of the Microeconomics of Transition Economies Series which focuses on financial issues and the behaviour of firms and enterprises in economies undergoing transition from socialist to capitalist forms of organisation.