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An Assessment of Foreign Direct Investment Towards the BSEC Transition Economies

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Abstract

This paper represents an attempt to empirically determine the main factors affecting foreign investment inflows in the Black Sea Economic Cooperation (BSEC) transition economies. The analysis indicates that the timing and form of the privatization process as well as the progress towards liberalization constitute the two more important factors explaining the moderate performance of these countries in attracting foreign investment. Other factors such as, the size of the market, the strength of trade linkages, and labour costs also exert significant influence on the volume of foreign investment in the region.

Suggested Citation

  • Papazoglou, Christos & Liargovas, Panagiotis, 1997. "An Assessment of Foreign Direct Investment Towards the BSEC Transition Economies," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 50(3), pages 475-487.
  • Handle: RePEc:ris:ecoint:0334
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    Cited by:

    1. Panagiotis Liargovas & Dionysios Chionis, 2001. "Economic Integration between the European Union and the Transition Economies of Central European Initiative Countries," Post-Communist Economies, Taylor & Francis Journals, vol. 13(1), pages 57-70.

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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