Foreign direct investment in Central Europe:: Experiences of major Western investors
This paper examines major investments by Western companies in Central Europe between 1989 and 1996. The results indicate that investors are primarily motivated to enter these transition economies on the basis of host country specific market factors, although the opportunity to gain first mover advantages or comparative labour cost advantages were also important elements in the investment equation. Subsequently, while investors have utilized various modes of investment to enter these new markets, there is a clear move to consolidate their shareholding positions. Finally, the signs are encouraging as the level of performance in many local firms seems to be improving.
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Volume (Year): 16 (1998)
Issue (Month): 4 (August)
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