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Patterns of inward FDI in economies in transition

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  • Kálmán KALOTAY

    (United Nations Conference on Trade and Development)

Abstract

This article analyses the contribution of foreign direct investment to structural change in various groups of economies in transition: new European Union member countries (including Bulgaria and Romania), South-East Europe (excluding Bulgaria and Romania), and the Commonwealth of Independent States. It comes to the conclusion that foreign direct investment has had the deepest impact on structural change in new EU members, and the smallest (in fact negative) impact in the Russian Federation. This is related to differences in timing of investment flows (they started earlier in new EU members; other subregions caught up later on), as well as the sectoral composition of FDI. It also has to be noted that the FDI of new EU member countries, especially in automotive production and electronics proved to be more vulnerable to the crisis of 2008–2009 than FDI in other transition economies. It remains to be seen if these countries in turn will be able to benefit fast from the post-crisis recovery.

Suggested Citation

  • Kálmán KALOTAY, 2010. "Patterns of inward FDI in economies in transition," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 55-76, December.
    • Handle: RePEc:jes:journl:y:2010:v:1:p:55-76
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    File URL: http://ejes.uaic.ro/articles/EJES2010_0102_KAL.pdf
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    1. Michael Landesmann, 2000. "Structural Change in the Transition Economies, 1989 to 1999," wiiw Research Reports 269, The Vienna Institute for International Economic Studies, wiiw.
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    Cited by:

    1. Marjan Petreski & Stefan Tanevski, 2024. "‘Bargain your share’: the role of workers’ bargaining power for labor share, with reference to transition economies," Empirical Economics, Springer, vol. 67(5), pages 2241-2288, November.
    2. Saul Estrin, 2017. "Foreign direct investment and employment in transition economies," IZA World of Labor, Institute of Labor Economics (IZA), pages 330-330, January.
    3. Viktor Kvĕtoň & Aleš Bĕlohradský & Jiří Blažek, 2020. "The variegated role of proximities in acquisitions by domestic and international companies in different phases of economic cycles," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 583-602, June.
    4. Mirella Damiani & Milica Uvalic, 2014. "Industrial Development in the EU: What Lessons for the Future Member States?," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 16(1), pages 5-48, April.
    5. Lobanov, M. & Zvezdanovic Lobanova, J. & Zvezdanovic, M., 2022. "Typologization of industrial systems in the countries of Central-Eastern and South-Eastern Europe," Journal of the New Economic Association, New Economic Association, vol. 56(4), pages 92-122.
    6. Gál, Zoltán, 2019. "Az FDI szerepe a gazdasági növekedés és a beruházások területi differenciálódásában Magyarországon [The foreign direct investment role in Hungarys economic growth and territorial differentiation of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 653-686.
    7. Domanović Violeta & Jovanović Sandra Stojadinović, 2017. "Effects of Foreign Direct Investments on Serbian Exporters′ Profitability," Economic Themes, Sciendo, vol. 55(1), pages 1-23, March.
    8. Estrin, Saul & Uvalic, Milica, 2016. "Foreign direct investment in the Western Balkans: what role has it played during transition?," LSE Research Online Documents on Economics 67004, London School of Economics and Political Science, LSE Library.
    9. Enika Abazi, 2021. "Geopolitics in the Western Balkans: linkages, leverages and gatekeepers," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 24, pages 85-108, July.
    10. Estrin, Saul & Uvalic, Milica, 2013. "Foreign direct investment into transition economies: are the Balkans different?," LSE Research Online Documents on Economics 53180, London School of Economics and Political Science, LSE Library.
    11. Zoltán Gál & András Gyimesi, 2025. "The role of FDI in regional economic growth in Central & Eastern Europe: the case of the Hungarian regions," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 16, pages 281-309, June.
    12. Jože Damijan & Črt Kostevc & Matija Rojec, "undated". "FDI, structural change and productivity growth: global supply chains at work in Central and Eastern European countries," IRMO Occasional Papers 3, Institute for Development and International Relations, Zagreb.
    13. Oltiana Muharremi, 2020. "Discussion: Challenges and Recent Developments of Foreign Direct Investments in Albania and Western Balkan Countries," Central European Business Review, Prague University of Economics and Business, vol. 2020(4), pages 96-111.
    14. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 4, London School of Economics / European Institute.
    15. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," LEQS – LSE 'Europe in Question' Discussion Paper Series 64, European Institute, LSE.
    16. Panibratov, A. & Ermolaeva, L., 2015. "Outward investments from China and Russia: Macroeconomic and institutional perspective," Working Papers 6432, Graduate School of Management, St. Petersburg State University.
    17. Castellani, Davide & Marin, Giovanni & Montresor, Sandro & Zanfei, Antonello, 2022. "Greenfield foreign direct investments and regional environmental technologies," Research Policy, Elsevier, vol. 51(1).
    18. K. Kalotay & A. Sulstarova, 2021. "FDI in the Post-Soviet Space Three Decades after the Disintegration of the Soviet Union," Outlines of global transformations: politics, economics, law, Center for Crisis Society Studies, vol. 14(5).
    19. Saul Estrin & Milica Uvalic, 2016. "Foreign Direct Investment in the Western Balkans: What Role Has it Played During Transition?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(3), pages 455-483, September.

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