IDEAS home Printed from https://ideas.repec.org/a/krk/eberjl/v2y2014i3p19-31.html
   My bibliography  Save this article

Foreign Direct Investment in the Visegrad Countries after 2004: Have the Visegrad Countries’ Membership in the European Union Changed Something?

Author

Listed:
  • Jacek Klich

    (Cracow University of Economics)

Abstract

The purpose of the paper is to identify the volume and dynamics of FDI in the Czech Republic, Hungary, Poland and Slovakia (V4) after their full accession to the European Union. The following hypothesis is tested: the Visegrad countries’ membership in the European Union has not resulted in higher increases of FDI in these countries. The methodology is based on the concept of Investment Development Path (IDP) and Net Outward Investment position (NOI) of a country. The most current data (as of 2012) on FDI is derived from UNCTAD. The literature available in ScienceDirect and EBSCO has been reviewed. The whole concept of IDP should be revisited. Possible changes should lead toward adopting a broader perspective encompassing the idiosyncratic economic structure of countries, as well as the heterogenous nature of FDI. It seems to be necessary to redefine a fourth stage of IDP and to revise the criteria for classification into certain stages to avoid discrepancies in attributing particular countries to certain stages. Further conceptual work is needed with respect to the whole IDP model. The paper extends Gorynia’s, Nowak’s & Wolniak’s analysis on IDP in V4 countries by six years (i.e. from 2007 till 2012) and allows a preliminary assessment of IDP to V4 countries after their full membership to EU to be made.

Suggested Citation

  • Jacek Klich, 2014. "Foreign Direct Investment in the Visegrad Countries after 2004: Have the Visegrad Countries’ Membership in the European Union Changed Something?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(3), pages 19-31.
    • Handle: RePEc:krk:eberjl:v:2:y:2014:i:3:p:19-31
    as

    Download full text from publisher

    File URL: http://eber.uek.krakow.pl/index.php/eber/article/download/51/54
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eric Rugraff, 2008. "Are the FDI policies of the Central European countries efficient?," Post-Communist Economies, Taylor & Francis Journals, vol. 20(3), pages 303-316.
    2. Onaran, Ozlem & Stockhammer, Engelbert, 2008. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis for the manufacturing industry," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 66-80, March.
    3. Miguel Fonseca & António Mendonça & José Passos, 2007. "The Investment Development Path Hypothesis: Evidence from the Portuguese Case – A Panel Data Analysis," Working Papers Department of Economics 2007/21, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    4. Rajneesh NARULA & José GUIMÓN, 2010. "The investment development path in a globalised world: implications for Eastern Europe," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 5-19, December.
    5. Özlem Onaran, 2008. "Jobless Growth in the Central and Eastern European Countries," Working Papers wp165, Political Economy Research Institute, University of Massachusetts at Amherst.
    6. Herrmann, Sabine & Jochem, Axel, 2005. "Trade balances of the central and east European EU member states and the role of foreign direct investment," Discussion Paper Series 1: Economic Studies 2005,41, Deutsche Bundesbank.
    7. Lukasz Ambroziak, 2012. "FDI and intra-industry trade: theory and empirical evidence from the Visegrad Countries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 180-198.
    8. Anca Elena Nucu, 2011. "The Dynamics Of Foreign Direct Investments In Central And Eastern Europe Under The Impact Of International Crisis Of 2007," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3(1), pages 81-91, March.
    9. Mihai MUTASCU & Roxana HETES & Oana MIRU, 2010. "The General Framework For Foreign Direct Investments Attraction In Central And Eastern European Countries," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 6, pages 65-88, December.
    10. Victoria Kravtsova, 2014. "Productivity change and externalities: empirical evidence from Hungary," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(1), pages 102-125, January.
    11. Stoian, Carmen, 2013. "Extending Dunning's Investment Development Path: The role of home country institutional determinants in explaining outward foreign direct investment," International Business Review, Elsevier, vol. 22(3), pages 615-637.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grzegorz Tchorek, 2016. "Foreign Direct Investment and Investment Development Path. The Case of Visegrad Countries (Bezposrednie Inwestycje Zagraniczne a Inwestycyjna Sciezka Rozwoju. Przypadek krajow grupy Wyszehradzkiej)," Research Reports, University of Warsaw, Faculty of Management, vol. 2(22), pages 201-212.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mustafa Sakr & Andre Jordaan, 2016. "Emerging Multinational Corporations: A Prominent Player in the Global Economy," Working Papers 201623, University of Pretoria, Department of Economics.
    2. Konstantinos Lagos & Yuan Wang, . "The threshold effects of global economic uncertainty on foreign direct investment," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    3. Drogendijk, Rian & Martín Martín, Oscar, 2015. "Relevant dimensions and contextual weights of distance in international business decisions: Evidence from Spanish and Chinese outward FDI," International Business Review, Elsevier, vol. 24(1), pages 133-147.
    4. Mustafa Sakr & Andre Jordaan, 2016. "Emerging Multinational Corporations: Theoretical and Conceptual Framework," Working Papers 201604, University of Pretoria, Department of Economics.
    5. André C. Jordaan & Mustafa Sakr, 2017. "Push factors of emerging multinational corporations: evidence from South Africa and Egypt," Working Papers 664, Economic Research Southern Africa.
    6. André C. Jordaan & Mustafa Sakr, 2017. "Foreign market selection of emerging multinational corporations: evidence from South African and Egyptian corporations," Working Papers 680, Economic Research Southern Africa.
    7. Swati Virmani & Edmund Amann, 2015. "Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?," Working Papers 92160912, Lancaster University Management School, Economics Department.
    8. Gorynia, Marian & Nowak, Jan & Trąpczyński, Piotr & Wolniak, Radosław, 2019. "Friend or Foe? On the role of institutional reforms in the investment development path of Central and East European economies," International Business Review, Elsevier, vol. 28(3), pages 575-587.
    9. Özlem Onaran, 2008. "The Effects of Globalization on Wages, Employment, and Wage Share in Austria," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 34(3), pages 337-360.
    10. Arindam Mondal & Somnath Lahiri & Sougata Ray, 2021. "Strategic Response to Inward Foreign Direct Investment: A Study of Indian Family Firms," Management International Review, Springer, vol. 61(2), pages 207-233, April.
    11. Romualdas Ginevičius & Agnė Šimelytė, 2011. "Government incentives directed towards foreign direct investment: a case of central and eastern europe," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(3), pages 435-450, May.
    12. Patricia Laurens & Christian Le Bas & Antoine Schoen, 2019. "Worldwide IP coverage of patented inventions in large pharma firms: to what extent do the internationalisation of R&D and firm strategy matter?," Post-Print hal-01725229, HAL.
    13. Lobanov, M. & Zvezdanovic Lobanova, J. & Zvezdanovic, M., 2022. "Typologization of industrial systems in the countries of Central-Eastern and South-Eastern Europe," Journal of the New Economic Association, New Economic Association, vol. 56(4), pages 92-122.
    14. Olu Ajakaiye & Afeikhena T. Jerome & David Nabena & Olufunke A. Alaba, 2015. "Understanding the relationship between growth and employment in Nigeria," WIDER Working Paper Series 124, World Institute for Development Economic Research (UNU-WIDER).
    15. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2015. "Integrated sectors - diversified earnings: the (missing) impact of offshoring on wages and wage convergence in the EU27," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 325-350, September.
    16. Richard Grieveson & Mario Holzner & Gabor Hunya & Leon Podkaminer, 2019. "Monthly Report No. 3/2019," wiiw Monthly Reports 2019-03, The Vienna Institute for International Economic Studies, wiiw.
    17. Richard Kofi Asravor & Frank Gyimah Sackey, 2022. "Wage Price Floors and Sectoral Employment Outcomes in Ghana," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(1), pages 103-122, March.
    18. Ding, Haoyuan & Ni, Bei & Xue, Chang & Zhang, Xiaoyu, 2022. "Land holdings and outward foreign direct investment: Evidence from China," Journal of International Money and Finance, Elsevier, vol. 124(C).
    19. Gál, Zoltán, 2019. "Az FDI szerepe a gazdasági növekedés és a beruházások területi differenciálódásában Magyarországon [The foreign direct investment role in Hungarys economic growth and territorial differentiation of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 653-686.
    20. Stoian, Carmen & Mohr, Alex, 2016. "Outward foreign direct investment from emerging economies: escaping home country regulative voids," International Business Review, Elsevier, vol. 25(5), pages 1124-1135.

    More about this item

    Keywords

    foreign direct investment (FDI); Visegrad countries (V4); international capital movement; sector patterns of FDI;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:krk:eberjl:v:2:y:2014:i:3:p:19-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piotr Stanek, PhD. (email available below). General contact details of provider: https://edirc.repec.org/data/aekrapl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.