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Post-crisis Crossroads for FDI in CEE

In: Foreign Direct Investment in Central and Eastern Europe

Author

Listed:
  • Kálmán Kalotay

    (United Nations Conference on Trade and Development (UNCTAD))

Abstract

During the transition to market economy, inward foreign direct investment was a major source of growth and structural transformation in the 11 Central and Eastern European member states of the European Union. In these countries, the onset of the Great Recession coincided with the gradual exhaustion of competitiveness based on cheap semi-skilled labour. In the aftermath of the crisis, these countries have to find new ways of leveraging their skills base, if they wish to defend their place in the international division of labour. Difficulties in attracting FDI are reflected in the fact that the share of the CEE countries in world FDI flows and stocks has stopped increasing. The chapter analyses past features of FDI in the region in order to draw conclusions on potential future performance. It also analyses the policy responses of individual countries to the crisis and the new conditions of attracting FDI.

Suggested Citation

  • Kálmán Kalotay, 2017. "Post-crisis Crossroads for FDI in CEE," Studies in Economic Transition, in: Balázs Szent-Iványi (ed.), Foreign Direct Investment in Central and Eastern Europe, chapter 2, pages 23-49, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-3-319-40496-7_2
    DOI: 10.1007/978-3-319-40496-7_2
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    Cited by:

    1. Elena Pelinescu & Mihaela Simionescu, 2017. "The Effects of the Recent Economic and Financial Crisis on the Romanian Economy," Working papers Globalization - Economic, Social and Moral Implications, April 2017 15, Research Association for Interdisciplinary Studies.
    2. Grodzicki, Maciej J. & Możdżeń, Michał, 2021. "Central and Eastern European economies in a Goldilocks age: A model of labor market institutional choice," Economic Modelling, Elsevier, vol. 104(C).
    3. Taran, Alina & Simga-Mugan, Can & Mironiuc, Marilena, 2021. "Country-segment disclosure of foreign operations from Central and Eastern Europe: Country-level determinants and value relevance," Journal of Multinational Financial Management, Elsevier, vol. 62(C).

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