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Industrial restructuring in European Transition Economies and TNC's Investment Motivations

Author

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  • Julia Manea

    (Manchester School of Management, UMIST, Manchester)

  • Robert Pearce

    (Department of Economics, University of Reading)

Abstract

Using survey evidence the paper characterises TNCs' strategic positioning in central and eastern European economies in terms of the relative status of seven motives for investing and the degree of use of seven sources of technology. As a key theme the ways in which the diverse objectives and technological positioning of TNCs' operations in the transition economies can affect both the initial industrial transformation and further sustained development of such host countries is analysed. The entry of TNCs to the transition economies is found to target the supply of the local markets, using the groups' mature technologies as embodied in established products. However, the presence of various secondary motives and supporting localised technology sources demonstrates the presence of significant evolutionary processes. These may lead to individualised (exportoriented) roles of subsidiaries in transition economies using local technology and creative competences.

Suggested Citation

  • Julia Manea & Robert Pearce, 2004. "Industrial restructuring in European Transition Economies and TNC's Investment Motivations," Economics Discussion Papers em-dp2004-10, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2004-10
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