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

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Listed:
  • Nathalie FABRY

    (Université Paris-Est Marne-la-Vallée)

  • Sylvain ZEGHNI

    (Université Paris-Est Marne-la-Vallée)

Abstract

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

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    1. Simon Johnson & Daniel Kaufman & Andrei Shleifer, 1997. "The Unofficial Economy in Transition," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(2), pages 159-240.
    2. repec:ebl:ecbull:v:6:y:2007:i:33:p:1-9 is not listed on IDEAS
    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.
    4. 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.
    5. Johannes Jütting, 2003. "Institutions and Development: A Critical Review," OECD Development Centre Working Papers 210, OECD Publishing.
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    1. repec:rnp:ppaper:nvg127 is not listed on IDEAS
    2. Oana-Ramona SOCOLIUC (GURIȚĂ) & Andreea-Oana IACOBUȚĂ-MIHĂIȚĂ & Elena CIORTESCU, 2021. "Private property - the inclusive institution which shaped dissimilar economic dynamics. Evidence from the Czech Republic and Romania," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 213-243, December.
    3. 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.
    4. Ágnes Szunomár, 2018. "Chinese Fdi In Central And Eastern Europe. An Overview Of Factors Motivating Chinese Mnes In The Cee Region," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 6(2), pages 4-16, December.
    5. Jelena Zvezdanoviæ Lobanova & Mikhail Lobanov & Milan, 2021. "Governance and civil and political rights as FDI determinants in transition countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 39(1), pages 59-86.
    6. Neshat Podvorica, 2015. "Alternative Remedies in Resolving Disputes in Transitional Countries and Their Impact in Foreign Direct Investment (FDI): Kosovo Case," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 4, April.

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