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Investment Attractiveness Of Central And Eastern European Countries In The Light Of New Locational Advantages Development

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  • Elzbieta Janton-Drozdowska

    (Adam Mickiewicz University in Poznan)

  • Maria Majewska

    (Adam Mickiewicz University in Poznan)

Abstract

The aim of this work was to present the similarities between the components of competitiveness and investment attractiveness as two complementary categories, and to show the role of new locational advantages in determining the level of investment attractiveness of a country. Another objective of this paper was to provide a comparative analysis of Central and Eastern European countries in terms of their investment attractiveness. Thus this paper was organized as follows: the first part of the paper focused on a country’s competitiveness, and the traditional and new location advantages that determine its investment attractiveness in view of direct investment inflows in the light of M. Porter’s model of a diamond, an eclectic paradigm of J. H. Dunning and new growth theories. The second part presented the results of investment attractiveness analysis including selected countries of CEE in the years 1995-2013. Comparing the investment attractiveness of Central and Eastern European countries shows that a rather narrow group of countries attracts a greater amount of FDI, and many more countries have experienced a decline in FDI. Therefore, the research results allow for the conclusion that Central and Eastern Europe reduced its investment attractiveness over the past years. This means that the majority of Central and Eastern European countries are becoming less successful in attracting FDI, and therefore in shaping the environment in which foreign companies wish to conduct their business.

Suggested Citation

  • Elzbieta Janton-Drozdowska & Maria Majewska, 2016. "Investment Attractiveness Of Central And Eastern European Countries In The Light Of New Locational Advantages Development," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(1), pages 97-119, March.
    • Handle: RePEc:pes:ierequ:v:11:y:2016:i:1:p:97-119
    DOI: 10.12775/EQUIL.2016.005
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    References listed on IDEAS

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    1. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    2. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    3. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    4. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
    5. Michael Porter, 1994. "The Role of Location in Competition," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 35-40.
    6. Leslie Budd & Amer Hirmis, 2004. "Conceptual Framework for Regional Competitiveness," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1015-1028.
    7. Gina Cristina DIMIAN & Aniela DANCIU, 2011. "National and Regional Competitiveness in the Crisis Context. Successful Examples," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(11(564)), pages 67-78, November.
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    Cited by:

    1. Michal Bernard Pietrzak, 2016. "The Problem of the Inclusion of Spatial Dependence Within the TOPSIS Method," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 12(3), pages 69-86.
    2. Augustin Ignatov, 2017. "Liberalism - Key to Entrepreneurial and Innovation Success: Estonian Case Study," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 20(66), pages 43-62, December.
    3. Adam P. Balcerzak, 2016. "Technological Potential of European Economy. Proposition of Measurement with Application of Multiple Criteria Decision Analysis," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 12(3), pages 7-17.
    4. Ilyash Olha & Smoliar Liubov & Doroshkevych Dariia & Yildirim Osman & Vasylciv Taras & Lupak Ruslan, 2020. "Evaluation of enterprise investment attractiveness under circumstances of economic development," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 47(47), pages 95-113, March.

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    More about this item

    Keywords

    investment attractiveness; Central and Eastern European countries;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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