Foreign Direct Investment and Vertical Contracting in the Agri-Food Sector of Transition Economies

  • Hamish R. Gow
  • Johan F. M. Swinnen
Part of the Natural Resource Management and Policy book series (NRMP, volume 20)


Total flows of foreign direct investment (FDI) into transition countries (TCs) increased significantly during the early 1990s.i FDI has a positive impact on industry in TCs because it provides capital essential for restructuring and modernization, as well as bringing managerial and technological skills, which are in short supply within the region (OECD, 1998). Agri-food sector FDI has accounted for a substantial share of total FDI. The vast majority of agri-food FDI has been directed to the agro-industry, not to primary agriculture, but FDI is still having a major impact on primary agriculture.


Foreign Direct Investment Spillover Effect Transition Country Spot Market Contractual Arrangement 
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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Hamish R. Gow
    • 1
    • 2
  • Johan F. M. Swinnen
    • 1
    • 3
  1. 1.Universiteit LeuvenBelgium
  2. 2.University of IllinoisUSA
  3. 3.European CommisionUSA

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