Trade and Foreign Direct Investments: The Point of View of Central Eastern European Countries

Changing Hierarchies in a Pan-European Perspective
  • M. Ferrazzi
  • D. Revoltella

The relevance of Central Eastern European (CEE) economies, following their rapid integration on world trade during the 1990s, has constantly increased in recent years to where they now represent an essential supplier of “old” European countries. The evolution of the industrial structure of CEE countries is one of the main determinants of their remarkable performance, and it is of particular interest to understand the redefinition of the different roles of the various industries across the enlarged Europe. These issues are relevant also because they help explain the competitive position of CEE versus other areas, in particular regarding the increasing competitive pressures from other emerging countries such as China.

Given the positive performance of recent years, will the CEE countries be able to consolidate their role in the future? While their cost advantages are expected to be gradually eroded, will CEE countries be able to leverage on other factors to remain competitive amid growing competition from emerging markets?

To answer these questions we analysed the most recent trends in trade flows, foreign direct investments, and the evolution of the local business environment in CEE.


Foreign Direct Investment Comparative Advantage Trade Flow Export Share Italian Firm 
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Copyright information

© Physica-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • M. Ferrazzi
    • 1
  • D. Revoltella
    • 1
  1. 1.CEE Economic Research, UniCredit GroupMilanItaly

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