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Economic Integration and FDI in Transition Economies: What Can We Learn from German Data?

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  • Claudia M. Buch
  • Farid Toubal

Abstract

The opening up of Central and Eastern Europe has provided new investment opportunities for German investors. At the same time, importing capital from abroad can be an efficient mechanism towards increased factor accumulation for the accession states to the European Union. In this paper, we study the development of German FDI into the accession states from an aggregated, sectoral, and a firm-level perspective. We assess whether patterns of FDI into the transition economies confirm recent theories of FDI and whether we find evidence that the heterogeneity of firms matters for FDI decisions.

Suggested Citation

  • Claudia M. Buch & Farid Toubal, 2003. "Economic Integration and FDI in Transition Economies: What Can We Learn from German Data?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(4), pages 594-610.
    • Handle: RePEc:diw:diwvjh:72-40-9
    DOI: 10.3790/vjh.72.4.594
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