The Impact of FDIs on Exports, and Export Competitiveness in Central and Eastern European Countries
AbstractAfter 1990, the Central and Eastern European (CEE) countries lowered the barriers to FDIs. Of course, many other developments were taking place at the same time: increasing openness to trade, privatization of previously government-owned production, and many other changes as these countries moved in various degrees from socialist to market economies and democratic governments. They privatized many state-owned enterprises, signed foreign trade agreements with other countries in the region, and have generally achieved a significant level of macroeconomic stability with improved growth rates. They also experienced a significant increase in FDI. As a consequence, the ratio of inward FDI to the CEE countries studied here in total world FDI inflows increased more than three-fold. Over the same period, these countries also achieved a substantial increase in their exports, especially towards Western Europe. We present in this paper the relation between the FDIs and exports in the CEE countries during 1990-2010 using statistic data analysis and literature review and underline the factors that determined an increase of exports in these countries. Despite other CEE countries that succeeded to attract many export-oriented FDIs, Romanian case is different because of many local specific factors such as an insufficient local production and a tight fiscal policy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by ScientificPapers.org in its journal Journal of Knowledge Management, Economics and Information Technology.
Volume (Year): 2 (2012)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.scientificpapers.org
FDIs; Central and Eastern European countries; investment policy; export competitiveness;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jonathan Eaton & Akiko Tamura, 1995.
"Bilateralism and Regionalism in Japanese and U.S. Trade and Direct Foreign Investment Patterns,"
NBER Working Papers
4758, National Bureau of Economic Research, Inc.
- Eaton Jonathan & Tamura Akiko, 1994. "Bilateralism and Regionalism in Japanese and U.S. Trade and Direct Foreign Investment Patterns," Journal of the Japanese and International Economies, Elsevier, vol. 8(4), pages 478-510, December.
- Jonathan Eaton & Akilo Tamura, 1994. "Bilateralism and Regionalism in Japanese and U.S. Trade and Direct Foreign Investment Patterns," Boston University - Institute for Economic Development 48, Boston University, Institute for Economic Development.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003.
"Export versus FDI,"
NBER Working Papers
9439, National Bureau of Economic Research, Inc.
- Helpman, Elhanan & Melitz, Marc J & Yeaple, Stephen R, 2003. "Export versus FDI," CEPR Discussion Papers 3741, C.E.P.R. Discussion Papers.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2003. "Export versus FDI," Harvard Institute of Economic Research Working Papers 1998, Harvard - Institute of Economic Research.
- Magnus Blomstrom & Robert E. Lipsey & Ksenia Kulchycky, 1988.
"U.S. and Swedish Direct Investment and Exports,"
in: Trade Policy Issues and Empirical Analysis, pages 257-302
National Bureau of Economic Research, Inc.
- BARRIOS, Salvador & GOERG, Holger & STROBL, Eric, 2004.
"Foreign direct investment, competition and industrial development in the host country,"
CORE Discussion Papers
2004011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Barrios, Salvador & Gorg, Holger & Strobl, Eric, 2005. "Foreign direct investment, competition and industrial development in the host country," European Economic Review, Elsevier, vol. 49(7), pages 1761-1784, October.
- Libor Krkoska, 2001. "Foreign direct investment financing of capital formation in central and eastern Europe," Working Papers 67, European Bank for Reconstruction and Development, Office of the Chief Economist.
- Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995.
"How Does Foreign Direct Investment Affect Economic Growth?,"
NBER Working Papers
5057, National Bureau of Economic Research, Inc.
- Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
- Bruce A. Blonigen, 1999.
"In Search of Substitution Between Foreign Production and Exports,"
NBER Working Papers
7154, National Bureau of Economic Research, Inc.
- Blonigen, Bruce A., 2001. "In search of substitution between foreign production and exports," Journal of International Economics, Elsevier, vol. 53(1), pages 81-104, February.
- Camilla Jensen, 2002. "Foreign direct investment, industrial restructuring and the upgrading of Polish exports," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 207-217.
- James R. Markusen & Anthony J. Venables, 1997.
"Foreign Direct Investment as a Catalyst for Industrial Development,"
NBER Working Papers
6241, National Bureau of Economic Research, Inc.
- Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
- Fritz Breuss & Peter Egger & Michael Pfaffermayr, 2003.
"Structural Funds, EU Enlargement, and the Redistribution of FDI in Europe,"
WIFO Working Papers
- Fritz Breuss & Peter Egger & Michael Pfaffermayr, 2010. "Structural funds, EU enlargement, and the redistribution of FDI in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(3), pages 469-494, September.
- Joze Mencinger, 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?," Kyklos, Wiley Blackwell, vol. 56(4), pages 491-508, November.
- Robert E. Lipsey, 2002. "Home and Host Country Effects of FDI," NBER Working Papers 9293, National Bureau of Economic Research, Inc.
- Zhang, Kevin Honglin & Song, Shunfeng, 2001. "Promoting exports: the role of inward FDI in China," China Economic Review, Elsevier, vol. 11(4), pages 385-396.
- Aitken, Brian & Harrison, Ann & DEC, 1994. "Do domestic firms benefit from foreign direct investment? Evidence from panel data," Policy Research Working Paper Series 1248, The World Bank.
- Clausing, Kimberly A, 2000. "Does Multinational Activity Displace Trade?," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 190-205, April.
- Roger Svensson, 1996. "Effects of overseas production on home country exports: Evidence based on Swedish multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 132(2), pages 304-329, September.
- Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-67, November.
- Alexandre Rekine & Patrick Paul Walsh, 1998. "European Trade and Foreign Direct Investment. U-Shaping Industrial Output in Central and Eastern Europe: Theory and Evidence," LICOS Discussion Papers 7398, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Patrick P. Walsh & Alexander Repkine, 1998. "European Trade and Foreign Direct Investment U-Shaping Industrial Output in Central and Eastern Europe," IMF Working Papers 98/150, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrian Ghencea).
If references are entirely missing, you can add them using this form.