The Technological Role Of Inward Foreign Direct Investment In Central East Europe

Foreign direct investment (FDI) assumed a prominent role in Central East Europe (CEE) early on in the transition process. Foreign investors were assigned the task of restructuring markets, providing capital and knowledge for investment in technologically outdated and financially ailing firms.

Foreign subsidiaries of multinational companies are suggested as one of the main channels of technology transfer to less developed economies. In Central East Europe their presence proved to be a decisive factor to economic restructuring and development. This volume is a unique guide to theory, method of research, and empirical evidence, for technology transfer via foreign subsidiaries of multinational companies. It combines the merits of a core text on technology transfer via FDI with up-to-date empirical evidence.

Foreign direct investment (FDI) assumed a prominent role in Central East Europe (CEE) early on in the transition process. Foreign investors were assigned the task of restructuring markets, providing capital and knowledge for investment in technologically outdated and financially ailing firms.

This title was first published in 2003. Covering a diverse range of countries such as Bulgaria, the Czech Republic, Hungary, Poland, Slovakia, Slovenia and Russia, as well as referring to the characteristics of the region as a whole, this book examines the inflow and outflow of foreign direct investment from both home and host company and country perspectives. By analyzing foreign direct investment in terms of process, content and context, the book provides a holist approach towards direct foreign investment in the transitional context of Central and Eastern Europe, embracing both macro- and micro-economic perspectives of the process.

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.

'Written in a clear and straightforward style, and well grounded in succinct and pertinent analysis...It will prove a boon to students and practitioners alike as moves proceed towards European integration.' - British Book News This volume identifies and analyses the extent to which the countries of Central and Eastern Europe are likely to attract inward foreign direct investment (FDI) to the turn of the century. Although these countries have been growing recipients of FDI, Western multinationals remain cautious and are slow to commit large investment sums. The book covers the contextual and thematic aspects of FDI as well as empirical country studies (including the Commonwealth of Independent States, Hungary, Poland and Slovenia) which address the legal environment for FDI, its magnitude and motives and industrial breakdown. The final section discusses the potential for closer economic and political integration in Europe.

Countries create different type of incentives for foreign firms, such as; direct incentives/subsidies, tax relief, soft loans and preferred handling. This volume aims to analyze the impact of European Union on inward foreign direct investment in Europe and to discuss what type of effects are being created by this race for FDI.

How is the behaviour and impact of western multinational enterprises affected when investing in transition economies? what are the particular costs and benefits of such investment for the host countries? This comprehensive book provides an up-to-date analysis of the scope and pattern of foreign direct investment flows into the transition economies of central and eastern Europe.