Abstract
The 2008 financial crisis along with the Eurozone debt problems, the “Brexit,” and the expanding influence of other powers in the volatile region of Western Balkans (WBs), revived the prospects of the EU’s Eastern Enlargement. The EU Commission set as a target the year 2025. The unresolved legacies of the 1990s and the slowness of implementation in the required reforms according to the Copenhagen Accession Criteria left six transition economies of WBs out of the EU. This chapter aims to map the main obstacles that these non-EU members in the WBs must overcome to complete their political and economic transformation in achieving the 2025 EU membership. Chapter’s focus is the role of the inward FDI in WB’s European future using a political economy approach.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Adebahr, C. (2018). Is Kosovo a Country, or a Cause—And for What? Global Policy. Available at https://www.globalpolicyjournal.com/blog/19/06/2018/kosovo-country-or-cause-and-what. Accessed 4 January 2019.
Agir, B. S., Gürsoy, B., & Arman, M. N. (2016). European Perspective of Human Security and the Western Balkans. Revista de Stiinte Politice, 50(50), 41–54.
Bechev, D. (2018). Understanding Russia’s Influence in the Western Balkans. Helsinki: Hybrid CoE.
Belloni, R., & Brunazzo, M. (2017). After Brexit: The Western Balkans in the European Waiting Room. European Review of International Studies, 1(1), 21–38.
Bennett, V. (2017). What China’s ‘Belt and Road Initiative’ Means for the Western Balkans.
Bieri, M. (2015, March). The Western Balkans Between Europe and Russia (CSS Analyses in Security Policy, No. 170, pp. 1–4).
Borzel, T., & Grimm, S. (2018). Building Good (Enough) Governance in Postconflict Societies & Areas of Limited Statehood: The European Union & the Western Balkans. Daedalus, 147(1), 116–127.
Brada, J. C., Kutan, A. M., & Yigit, T. M. (2006). The Effects of Transition and Political Instability on Foreign Direct Investment Inflows: Central Europe and the Balkans. Economics of Transition, 14(4), 649–680.
CEFTA. (2018). Regional Investment Reform Agenda for the Western Balkans Six. CEFTA.
Cefta.int. (2019). CEFTA Parties.
Dabour, N. M. (2000). The Role of Foireign Direct Investment (FDI) in Development and Growth in OIC Member Countries. Journal of Economic Cooperation, 21(3), 27–55.
Dabrowski, M., & Muachenkova, Y. (2018). The Western Balkans on the Road to the European Union, Policy Contribution (Vol. 38). https://doi.org/10.1002/mmnd.18940380315.
Demetropoulou, L. (2002). Europe and the Balkans: Membership Aspiration, EU Involvement and Europeanization Capacity in South Eastern Europe. Southeast European Politics, 3(2–3), 87–106.
Džankić, J., Keil, S., & Kmezić, M. (2019). Introduction: The Europeanisation of the Western Balkans. In J. Džankić, S. Keil, & M. Kmezić (Eds.), The Europeanisation of the Western Balkans. New Perspectives on South-East Europe (pp. 1–14). Cham: Palgrave Macmillan.
EBRD. (2019). Belt and Road Initiative (BRI). Available at https://www.ebrd.com/what-we-do/belt-androad/overview.html. Accessed 3 January 2019.
Elbasani, A. (2008). The Stabilisation and Association Process in the Balkans: Overloaded Agenda and Weak Incentives? (Vol. 3) (EUI Working Paper SPS).
Estrin, S., & Uvalic, M. (2016a). Foreign Direct Investment in the Western Balkans: What Role Has It Played During Transition? Comparative Economic Studies, 58(3), 455–483.
Estrin, S., & Uvalic, M. (2016b). Are Foreign Direct Investments in the Balkans Different? In Contemporary Issues in Development Economics (pp. 178–193). London: Palgrave Macmillan.
European Commission. (2018). A Credible Enlargement Perspective for and Enhanced EU Engagement with the Western Balkans. Strasbourg: European Commission.
Freyburg, T., & Richter, S. (2010). National Identity Matters: The Limited Impact of EU Political Conditionality in the Western Balkans. Journal of European Public Policy, 17(2), 263–281.
Füle, S. (2013). Copenhagen Criteria—The Backbone of EU Enlargement. In The Copenhagen Criteria and the Enlargement of the European Union. (Conference Report, 9–11).
Fullani, A., & Tanku, A. (2013). Defining a New Reform Agenda Paths to Sustainable Convergence in South East Europe. In O. Anastasakis, P. Sanfey, & M. Watson (Eds.), Defining a New Reform Agenda Paths to Sustainable Convergence in South East Europe (p. 117). Oxford: SEESOX.
Gordon, C. (2009). The Stabilization and Association Process in the Western Balkans: An Effective Instrument of Post-conflict Management? Ethnopolitics, 8(3–4), 325–340.
Grieveson, R., Grübler, J., & Holzner, M. (2018). Western Balkans EU Accession: Is the 2025 Target Date Realistic? No. 20. Available at https://wiiw.ac.at/western-balkans-eu-accession-is-the-2025-target-date-realistic--dlp-4526.pdf. Accessed 28 November 2018.
Hänsel, L., & Feyerabend, F. (2018). The Role of External Actors in the Western Balkans. In L. Hänsel & F. Feyerabend (Eds.), The Influence of External Actors in the Western Balkans: A Map of Geopolitical Players (p. 41). Konrad-Adenauer-Stiftung.
Hunya, G., & Schwarzhappel, M. (2016). FDI Report FDI in Central, East and Southeast Europe: Slump despite Global Upturn. Vienna: The Vienna Institute for International Economic Studies.
IMF. (2014). 25 Years of Transition Post-communist Europe and the IMF. Washington, DC: IMF.
Ioannides, I., & Collantes-Celador, G. (2011). The Internal-External Security Nexus and EU Police/Rule of Law Missions in the Western Balkans. Conflict, Security and Development, 11(4), 415–445.
Kalotay, K. (2013). Inward FDI in the Western Balkans in the Wake of Croatia’s EU Accession. The Journal of World Investment & Trade, 14(2), 241–263.
Keil, S. (2013). Europeanization, State-Building and Democratization in the Western Balkans. Nationalities Papers, 41(3), 343–353.
Kinoshita, Y. (2011). Sectoral Composition of Foreign Direct Investment and External Vulnerability in Eastern Europe (Vol. 11, p. 1) (IMF Working Papers, No. 123).
Malovic, M., Özer, M., & Zdravkovic, A. (2018). Misunderstanding of FDI in the Western Balkans: Cart Before the Horse and Wheels Without Suspension. Journal of Balkan and Near Eastern Studies, 1–16.
Morelli, V., & Garding, S. (2018). Serbia: Background and U.S. Relations (Congressional Research Service Report).
Mulalic, M., & Karic, M. (2014). The Western Balkans Geopolitics and Russian Energy Politics. Epiphany, 7(1), 87–108.
Murgasova, Z., Ilahi, N., Miniane, J., Scott, A., & Vladkova-Hollar, I. (2015). The Western Balkans 15 Years of Economic Transition (International Monetary Fund Special Report).
Murinson, A. (2006). The Strategic Depth Doctrine of Turkish Foreign Policy. Middle Eastern Studies, 42(6), 945–964.
Nawaz, S., & Rafique, N. (2018). EU’S Western Balkan’s Policy Put to Test. Islamabad: Institute of Strategic Studies.
O’Brennan, J. (2014). ‘On the Slow Train to Nowhere?’ The European Union, ‘Enlargement Fatigue’ and the Western Balkans. European Foreign Affairs Review, 19(2), 221–242.
OECD. (2011). OECD Investment Compact for South East Europe: A Decade of Partnership for Prosperity and Stability. Paris: OECD.
Petrillo, E. R. (2013). Russian Foreign Policy Towards the Balkans: Which Perspective? Istituto Per Gli Studi Di Politica Internazionale, 169, 1–7.
Petrović, Ž., & Reljić, D. (2011). Turkish Interests and Involvement in the Western Balkans: A Score-Card. Insight Turkey, 13(3), 159–172.
Radaelli, C. (2003). The Europeanization of Public Policy. In K. Featherstone & C. Radaelli (Eds.), The Politics of Europeanization (pp. 27–56). Oxford: Oxford University Press.
Radovanovik, T. (2012). From ‘Balkanization’ to ‘Europeanization’ of the the Western Balkan Countries. American International Journal of Contemporary Research, 2(4), 207–214.
Richter, S. (2012). Two at One Blow? The EU and Its Quest for Security and Democracy by Political Conditionality in the Western Balkans. Democratization, 19(3), 507–534.
Sanfey, P., & Milatovic, J. (2018). The Western Balkans in Transition: Diagnosing the Constraints on the Path to a Sustainable Market Economy. London: EBRD.
Sanfey, P., Milatovic, J., & Kresic, A. (2016). How the Western Balkans Can Catch Up, European Bank for Reconstruction and Development (EBRD). https://doi.org/10.2139/ssrn.3119685.
Sanfey, P., & Zeh, S. (2012). Making Sense of Competitiveness Indicators in South-Eastern Europe (EBRD Working Paper, No. 145).
Schenker, H. (2008). The Stabilization and Association Process: An Engine of European Integration in Need of Tuning. Jemie, 7(1), 1–19.
Schwarzinger, M., & Sajdik, M. (2009). European Union Enlargement: Background, Developments, Facts. New Brunswick and London: Transcation.
Stehrer, R., & Holzner, M. (2018). Western Balkan Countries Knocking on EU’s Door. Wiiw. Available at https://wiiw.ac.at/western-balkan-countries-knocking-on-eu-s-door-n-282.html.
Tatham, A. (2009). Enlargement of the European Union. Alphen Aan Den Rijn: Kluwer Law International.
The Economist Intelligence Unit. (2018). Western Balkans to 2025 A Brighter Future or Permanent Marginalisation? London: The Economist Intelligence Unit.
Türbedar, E. (2011). Turkey’s New Activism in the Western Balkans: Ambitions and Obstacles. Insight Turkey, 13(3), 139–158.
UNCTAD. (2000). World Investment Report 2000: Cross-Border Mergers and Acquisitions and Development, United Nations. New York and Geneva: UNCTAD.
UNCTAD. (2004). World Investment Report 2004: The Shift Towards Services. New York and Geneva. https://doi.org/10.1109/IPDPS.2011.205.
UNCTAD. (2007). World Investment Report 2007: Transnational Corporations, Extractive Industries and Development. New York and Geneva. https://doi.org/10.1590/S0101-31572008000300011.
UNCTAD. (2008). World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge, United Nations Conference on Trade and Development. New York and Geneva: UNCTAD.
UNCTAD. (2011). World Investment Report 2011: Non-equity Modes of International Production and Development, United Nations Conference on Trade and Development. New York and Geneva: UNCTAD.
UNCTAD. (2013). World Investment Report 2013. Global Value Chains: Investment and Trade for Development, United Nations Conference on Trade and Development, United Nations. New York and Geneva. ISBN: 978-92-1-112868-0.
UNCTAD. (2017). Investment Policy Review of South-East Europe. Available at https://unctad.org/en/PublicationsLibrary/diaepcb2017d6_en.pdf. Accessed 16 November 2018.
UNCTAD. (2018a). FDI Inflows by Region and Economy, 1990–2017, FDI/MNC Database: United Nations Conference on Trade and Development. Available at https://www.unctad.org/fdistatistics.
UNCTAD. (2018b). World Investment Report 2018: Investment and New Industrial Policies, United Nations Conference on Trade and Development. New York and Geneva. https://doi.org/10.1016/j.tws.2017.07.006.
UNCTAD. (2018c). Foreign Direct Investment: Inward and Outward Flows and Stock, Annual. New York and Geneva: UNCTAD.
UNCTAD. (2018d). FDI Inward Stock by Region and Economy, 1990–2017, FDI/MNC Database. New York and Geneva: UNCTAD.
Uvalic, M. (2010). Transition in Southeast Europe: Understanding Economic Development and Institutional Change (No. 2010/41). Helsinki: World Institute for Development Economics Research.
Vachudova, M. A. (2019). EU Enlargement and State Capture in the Western Balkans. In J. Džankić, S. Keil, & M. Kmezić (Eds.), The Europeanisation of the Western Balkans. New Perspectives on South-East Europe (pp. 63–85). Cham: Palgrave Macmillan.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Marangos, J., Triarchi, E., Anthrakidis, T. (2019). Political Economy, Inward Foreign Direct Investment and EU Accession of the Western Balkans. In: Vlachos, V., Bitzenis, A. (eds) European Union. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18103-1_8
Download citation
DOI: https://doi.org/10.1007/978-3-030-18103-1_8
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-18102-4
Online ISBN: 978-3-030-18103-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)