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Foreign Direct Investment in Central and Eastern Europe

Post-crisis Perspectives

  • Balázs Szent-Iványi

Benefits

  • Offers a rich glimpse into the changing dynamics of FDI inflows, intra-CEE FDI, government policies and investment promotion after the crisis

  • Explores the structural impacts of FDI in post-crisis Central and Eastern Europe

  • Relates findings to standard FDI theories such as Porter’s value chain based optimisation and Dunning’s investment development path model

Book

Part of the Studies in Economic Transition book series (SET)

About this book

Introduction

This book examines how foreign direct investment (FDI) inflows to Central and Eastern Europe have changed after the Great Recession. It argues that beyond their cyclical effects, the economic crisis and the changing competitiveness of Central and Eastern European countries have had structural impacts on FDI in the region. FDI has traditionally been viewed as the key driver of national development, but the apparent structural shift means that focusing on cheap labour as a competitive advantage is no longer a viable strategy for the countries in the region. The authors argue that these countries need to move beyond the narrative of upgrading (attracting FDI inflows with increasingly higher value added), and focus on ensuring greater value capture instead. A potential way for doing this is by developing the conditions in which innovative national companies can emerge, thrive and eventually develop into lead firms of global value chains. The book provides readers with a highly informative account of the reasons why this shift is necessary, as well as diverse perspectives and extensive discussions on the dynamics and structural impacts of FDI in post-crisis Central and Eastern Europe.

Keywords

foreign direct investment financial crisis Eastern and Central Europe State multi-national relations Post-crisis economic dynamics

Editors and affiliations

  • Balázs Szent-Iványi
    • 1
  1. 1.Aston Centre for EuropeAston UniversityBirminghamUnited Kingdom

About the editors

Balázs Szent-Iványi is a lecturer in Politics and International Relations at Aston University, Birmingham, UK. He also holds an associate professor position at Corvinus University, Budapest, Hungary.

Bibliographic information

Industry Sectors
Finance, Business & Banking

Reviews

“This book sets out to describe and analyse the main developments in foreign direct investment (FDI), in terms of volume and structure … . For readers interested in CEE and the EU, this book can also provide valuable insights. The new trends it documents and analyses have not been reflected so far in appropriate policy responses. In this respect the volume provides policymakers with practical evidence and policy suggestions they would do well to consider and act upon.” (Liliana Pop, Europe-Asia Studies, Vol. 70 (7), 2018)