FDIs and investment policy in some European countries after their EU accession. Challenges during the crisis
The aim of this paper is to find out to what extent the accession countries will be able to benefit from an increase in the quality of foreign direct investments (FDIs) that they receive due to EU membership. Although there will be some investment in new affiliates resulting in greenfield subsidiaries, transnational companies (TNCs) may divest their operations in response to better location advantages elsewhere in the EU (as Spain and Portugal are experiencing because their low-cost advantages are eroded). In many Central and Eastern European (CEE) countries, the share of foreign ownership in total capital stock is already typically much higher than in older EU member states, but we can already observe a trend of relocating TNCs’ subsidiaries to other emerging countries in order to diminish the costs, in the context of the present crisis and we believe that this trend will continue in the future, especially in the crisis context when the inceptive burden is heavy for governments. The conclusion of this paper is that the CEE countries haven’t faced quite similar conditions as the Southern European countries that acceded to the EU in the ‘80s. So, their benefits have considerably diminished and the present crisis didn’t help them at all to reduce their economic gaps comparing to the developed European countries.
Volume (Year): 33 (2011)
Issue (Month): 2(42) (December)
|Contact details of provider:|| Postal: Casa Academiei, Calea 13 Septembrie nr.13, sector 5, Bucureşti 761172|
Phone: 004 021 318.24.67
Fax: 004 021 318.24.67
Web page: http://www.ien.ro/
More information through EDIRC
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.:
- Christian Bellak & Rajneesh Narula, 2008.
"EU enlargement and consequences for FDI assisted industrial development,"
Economics & Management Discussion Papers
em-dp2008-69, Henley Business School, Reading University.
- Narula, Rajneesh & Bellak, Christian, 2008. "EU enlargement and consequences for FDI assisted industrial development," MERIT Working Papers 067, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Ángel Gavilán & Pablo Hernández de Cos & Juan F. Jimeno & Juan A. Rojas, 2011. "Fiscal policy, structural reforms and external imbalances: a quantitative evaluation for Spain," Working Papers 1107, Banco de España;Working Papers Homepage.
- Bellak, Christian & Leibrecht, Markus & Riedl, Aleksandra, 2008. "Labour costs and FDI flows into Central and Eastern European Countries: A survey of the literature and empirical evidence," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 17-37, March.
- Timothy Goodspeed & Jorge Martinez-Vazquez & JLi Zhang, 2006. "Are Government Policies More Important Than Taxation in Attracting FDI," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0614, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Timothy Goodspeed & Jorge Martinez-Vazquez & JLi Zhang, 2007. "Are Government Policies More Important Than Taxation in Attracting FDI?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0702, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:2:y:2011:i:42:p:169-183. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valentina Vasile)
If references are entirely missing, you can add them using this form.