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Changing Trends of Foreign Direct Investments in East Central Europe

In: Emerging-market Multinational Enterprises in East Central Europe

Author

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  • Miklós Szanyi

    (Centre for Economic and Regional Studies)

Abstract

Foreign direct investments in East Central Europe played significant role in the economic transition process after 1990. The support of multinational business was a logical choice for most governments to improve and modernize the economy. Despite the various paths taken by the individual countries of the region an FDI-based development model has been established in each of them. This model reflected asymmetric interdependence with the multinational businesses, and therefore the benefits of the presence of global value chains were not distributed evenly. The model ran out of thrust, while economic development started to decelerate. This trend led some of the governments to turn away from the policy of unconditional FDI support and taking more balanced policy actions, which resulted in decelerating economic development and stuck of FDI inflows.

Suggested Citation

  • Miklós Szanyi, 2020. "Changing Trends of Foreign Direct Investments in East Central Europe," Studies in Economic Transition, in: Ágnes Szunomár (ed.), Emerging-market Multinational Enterprises in East Central Europe, chapter 0, pages 21-47, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-3-030-55165-0_2
    DOI: 10.1007/978-3-030-55165-0_2
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    Cited by:

    1. Szunomár, Ágnes & Lima da Frota Araujo, Carlos Raul, 2022. "Kelet-Közép-Európa a digitális selyemúton? Lehetséges politikai gazdaságtani magyarázatok [Central and Eastern Europe on the Digital Silk Road? Possible political economic explanations]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 367-388.

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