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Role of Foreign Direct Investment in Restructuring of Agribusiness in the CEE Countries Following the Transition

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  • Takacs, Istvan
  • Liebmann, Lajos

Abstract

The foreign direct investment (FDI) is a form of the capital flow having several century traditions. In the privatization as well as modernization of economies following the economic and political transition of the countries in the Central and Eastern Europe at the 1990s the role of the foreign direct investment was significant. According to the research, besides to the general positive effects of the FDI (production culture, market demand orientated product and technology innovation, supplier nets of SMEs, diffused know-how, quality demands, etc.) also led to economic dependency as well as market structure deformations (see oil industry, sugar industry, retail chains). The point of view of sectors the foreign direct investment has flowed insignificantly into the agriculture (raw material production), while it has been significant into the food industry. The paper discusses the relations as well as causes of them.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 116339.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:116339

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Keywords: Agribusiness; International Relations/Trade;

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  1. Branstetter, Lee, 2006. "Is foreign direct investment a channel of knowledge spillovers? Evidence from Japan's FDI in the United States," Journal of International Economics, Elsevier, vol. 68(2), pages 325-344, March.
  2. John King, 2011. "Foreign Direct Investment and Pollution Havens," Journal of Economics and Econometrics, Economics and Econometrics Research Institute (EERI), Brussels, vol. 54(1), pages 39-47.
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