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FDI patterns and trends in central and eastern Europe with particular regard to the new Member States

Author

Listed:
  • Gábor Hunya

    (Senior economist, Vienna Institute for International Economic Studies)

  • Béla Galgóczi

    (Senior researcher, ETUI-REHS)

Abstract

This article examines foreign direct investment (FDI) in the European context and assesses the significance of relocation of production and workplaces from the west to the east. The first part of the article provides a statistical overview of FDI in central and eastern European countries (CEECs) for the last five years. Structural features of FDI flow and stock are presented and the trend of an increasing role for reinvested profits is examined. The second part focuses on the qualitative features of FDI and foreign trade. It provides evidence of the incidence of relocation, the growing role of intra-industrial trade, and the changing role of manufacturing in the economies of the EU-15 and the CEECs.

Suggested Citation

  • Gábor Hunya & Béla Galgóczi, 2006. "FDI patterns and trends in central and eastern Europe with particular regard to the new Member States," Transfer: European Review of Labour and Research, , vol. 12(4), pages 521-537, November.
  • Handle: RePEc:sae:treure:v:12:y:2006:i:4:p:521-537
    DOI: 10.1177/102425890601200405
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    References listed on IDEAS

    as
    1. Harry G. Broadman, 2005. "From Disintegration to Reintegration : Eastern Europe and the Former Soviet Union in International Trade," World Bank Publications - Books, The World Bank Group, number 7511.
    2. Mr. Alexander Lehmann, 2002. "Foreign Direct Investment in Emerging Markets: Income, Repatriations and Financial Vulnerabillities," IMF Working Papers 2002/047, International Monetary Fund.
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