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The Invesment Development Path and the Product Cycle - and Integrated Approach: Empirical Evidence from the new EU member States of CEE

Author

Listed:
  • Constantina Kottaridi

    (Athens University of Economics and Business, Department of International and European Economic Studies, Athens)

  • Fragkiskos Filippaios

    (Athens University of Economics and Business)

  • Marina Papanastassiou

    (Athens University of Economics and Business)

Abstract

In a globalized environment, where intense competitive pressures constitute the main features, Central and eastern Europe is emerging as a promising investment host region. Following the main lines of Vernon's Produce Life Cycle (PLC), Hirsch's International Trade and Investment Theory of the Firm (ITITF) and Dunning's Investment Development Path (IDP), a theoretical argumentation is synthesized and basic hypotheses are posed and empirically tested. Results demonstrate that these economies are going through the second stage of Dip and confirm a complementary relationship between FDI and Imports as well as the importance of specific location advantages advantages as key determinants of inwards FDI in the region.

Suggested Citation

  • Constantina Kottaridi & Fragkiskos Filippaios & Marina Papanastassiou, 2004. "The Invesment Development Path and the Product Cycle - and Integrated Approach: Empirical Evidence from the new EU member States of CEE," Economics Discussion Papers em-dp2004-03, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2004-03
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    Cited by:

    1. Mirel-Daniel Simionescu, 2017. "Determinants of Foreign Direct Investments in Bulgaria and Romania in the Context of Recent Economic Crisis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(1), pages 68-72, March.

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