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Inward FDI in seven transitional countries of South-Eastern Europe: a quest of institution-based attractiveness


  • Nathalie FABRY

    (Université Paris-Est Marne-la-Vallée)

  • Sylvain ZEGHNI

    () (Université Paris-Est Marne-la-Vallée)


The main question we address is whether the weak FDI level in the SEE-7 is linked to ill-adapted institutions or not. In order to answer it, we need to understand the role of institutions in shaping a strong localization advantage for FDI. We develop a theoretical framework to understand the relationship between Transition, Institutions and inward FDI. We assume that the ability to attract FDI depends on the local institutional arrangement. We present our pattern of institutional arrangement that may help us understand why, in spite of identical institutions, countries attract a different level of FDI. We split the SEE into two categories of host countries, each category being characterized by a specific institutional arrangement and level of FDI. We conclude with the relevance of our proposition to develop an analytical framework where FDI is the outcome of a new and well-adapted institutional arrangement

Suggested Citation

  • Nathalie FABRY & Sylvain ZEGHNI, 2010. "Inward FDI in seven transitional countries of South-Eastern Europe: a quest of institution-based attractiveness," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 77-91, December.
  • Handle: RePEc:jes:journl:y:2010:v:1:p:71-97

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    References listed on IDEAS

    1. repec:ebl:ecbull:v:6:y:2007:i:33:p:1-9 is not listed on IDEAS
    2. Kamal Upadhyaya & Franklin Mixon, Jr. & Dharmendra Dhakal, 2007. "Foreign direct investment and transition economies: empirical evidence from a panel data estimator," Economics Bulletin, AccessEcon, vol. 6(33), pages 1-9.
    3. Agnès Bénassy-Quéré & Maylis Coupet & Thierry Mayer, 2007. "Institutional Determinants of Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 30(5), pages 764-782, May.
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    Cited by:

    1. Agnes Szunomar, 2017. "Driving forces behind the international expansion strategies of Chinese MNEs," IWE Working Papers 237, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.


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