The foreign direct investment flows and the national economic evolution

This paper analyzes the Foreign Direct Investment (FDI) potential in supporting the economic growth on the national level using CEEC case studies. The analysis is based on the FDI–GDP growth rate relationship and highlights the national policy coping to the challenge of attracting further FDI, as it is shown by development indicators. Authors correlate the FDI path to the GDP and exports rate, reflecting the economic growth in the last decade. This paper is based on three-tier approach. Firstly, relying on international trade and Eurostat statistics there are shown trends on the evolution and structure of trade that might have been influenced by higher FDI in certain areas. Secondly, the paper shows the increasing FDI contribution to the national output on the basis of available official data, using case studies. Thirdly, the results in terms of official statistical data are correlated to information provided by various sources in order to identify the successful sectors and also the sectors confronted to competitiveness difficulties. This paper focuses also on the impact of the world economic crisis on the CEEC economies and especially on their exports and FDI inflows.