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Inter- and intra-industry linkages as a determinant of FDI in Central and Eastern Europe

  • Lefilleur, Julien
  • Maurel, Mathilde

This paper uses an unpublished dataset on disaggregated foreign direct investment (FDI) in Central and Eastern European countries (CEECs), and is rooted in new economic geography literature. A 10% increase in access to suppliers based in the FDI recipient country or access to the EU15 market for intermediate goods increases FDI by about 2% in Central European countries and by 1% in Eastern European countries. We argue that Central (core) European countries specialise in upstream industries and re-export goods toward FDI-origin countries, while Eastern (periphery) European countries are also involved in this production chain, but to a lesser extent.

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Article provided by Elsevier in its journal Economic Systems.

Volume (Year): 34 (2010)
Issue (Month): 3 (September)
Pages: 309-330

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Handle: RePEc:eee:ecosys:v:34:y:2010:i:3:p:309-330
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