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Monthly Report No. 11/2022 - FDI in Central, East and Southeast Europe

Author

Listed:
  • Olga Pindyuk

    (The Vienna Institute for International Economic Studies, wiiw)

  • Roman Stöllinger

    (The Vienna Institute for International Economic Studies, wiiw)

  • Zuzana Zavarská

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

​This issue of the wiiw Monthly Report replaces our earlier series of the wiiw FDI Report. FDI in Central, East and Southeast Europe Chart of the month Growing role of China as investor in CESEE by Olga Pindyuk Russia’s war in Ukraine causes a reversal of FDI trends by Olga Pindyuk Russia’s war in Ukraine interrupted the recovery of FDI in CESEE and has prompted significant shifts in the FDI structure. Russia has witnessed the large-scale divestment of foreign capital, and FDI inflows into EU-CEE have also suffered; meanwhile, in the second quarter the Western Balkans and Turkey recorded higher inflows on an annual basis. Some parts of the CESEE region may be able to benefit from accelerated green transition and the relocation of companies away from the war zone. No sign of functional upgrading in EU-CEE countries so far by Roman Stöllinger and Zuzana Zavarská The types of greenfield FDI projects that the EU countries of Central and Eastern Europe (EU-CEE) have been able to attract over the past two decades are consistently different from those in the Western EU member states. Greenfield FDI coming into EU-CEE is heavily skewed toward routine production activities; meanwhile FDI in the remaining activities involved in the production process homes in on other EU countries. This pattern of functional specialisation by EU-CEE is sub-optimal and requires a rethinking of FDI policy to enable functional diversification. Monthly and quarterly statistics for Central, East and Southeast Europe

Suggested Citation

  • Olga Pindyuk & Roman Stöllinger & Zuzana Zavarská, 2022. "Monthly Report No. 11/2022 - FDI in Central, East and Southeast Europe," wiiw Monthly Reports 2022-11, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:mpaper:mr:2022-11
    as

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    References listed on IDEAS

    as
    1. Stöllinger, Roman, 2021. "Testing the Smile Curve: Functional Specialisation and Value Creation in GVCs," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 93-116.
    2. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    3. Aleksandra Kordalska & Magdalena Olczyk & Roman Stöllinger & Zuzana Zavarská, 2022. "Functional Specialisation in EU Value Chains: Methods for Identifying EU Countries’ Roles in International Production Networks," wiiw Research Reports 461, The Vienna Institute for International Economic Studies, wiiw.
    4. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    5. Roman Stöllinger, 2019. "Functional Specialisation in Global Value Chains and the Middle-Income Trap," wiiw Research Reports 441, The Vienna Institute for International Economic Studies, wiiw.
    6. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    greenfield investments; FDI inflows; FDI stocks; functional specialisation; fabrication activities; headquarter activities;
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