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Foreign Direct Investment in Transition Economies of Europe and the Former Soviet Union

In: Palgrave Dictionary of Emerging Markets and Transition Economics

Author

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  • Godwin Okafor
  • Allan Webster

Abstract

This chapter looks at key issues concerning inward foreign direct investment (FDI) in transitional countries from Europe and Central Asia. It considers the important determinants and influences for inward FDI in these economies. A number of key determinants of inward FDI such as market size, natural resource endowments, and institutional quality are considered and found to be of importance. It also examines the contribution of inward FDI to the process of economic transition. The contribution of inward FDI to economic growth is examined. Although the connection between economic growth and inward FDI is more complex than might be expected, evidence does indeed suggest a strong association between the two in transitional countries. Finally, structural change is an important part of the process of economic transition, and in this too inward FDI has at least a significant potential contribution to make.

Suggested Citation

  • Godwin Okafor & Allan Webster, 2015. "Foreign Direct Investment in Transition Economies of Europe and the Former Soviet Union," Palgrave Macmillan Books, in: Jens Hölscher & Horst Tomann (ed.), Palgrave Dictionary of Emerging Markets and Transition Economics, chapter 21, pages 413-434, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-37138-6_22
    DOI: 10.1007/978-1-137-37138-6_22
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    Cited by:

    1. Appiah, Michael & Li, Mingxing & Taden, John & Ashraf, Sania & Tiwari, Aviral Kumar & Laari, Prosper Basommi, 2024. "Enhancing natural resource rents through industrialization, technological innovation, and foreign capital in the OECD countries: Does financial development matter?," Resources Policy, Elsevier, vol. 89(C).
    2. Latif Khalilov & Chae-Deug Yi, 2020. "Is Foreign Direct Investment a Real Driving Force of Economic Growth? A Panel Data Analysis," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 12(3), pages 273-299, September.

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