IDEAS home Printed from https://ideas.repec.org/a/tei/journl/v14y2021i2p14-28.html
   My bibliography  Save this article

Trends and Patterns of Greek Outward FDI in CEE Countries

Author

Listed:
  • Dimitris Giakoulas

    (researcher at the Small Enterprises' Institute of the Hellenic Confederation of Professionals, Craftsmen and Merchants (IME GSEVEE) and an adjunct lecturer at Panteion University)

Abstract

Purpose: This paper focuses on the internationalization of the Greek Multinational Enterprises in Central and Eastern European Countries. Its purpose is twofold. Firstly, to describe the process through which Greece became a major investor in the region following the collapse of the central planned economies. Secondly, to investigate if there are any different patterns between firms investing in Central and Eastern European Countries and those investing in other EU countries. Design/methodology/approach: Using firm level data and a descriptive qualitative approach we analyse the investment trends in the two regions and find indications of different patterns in the volumes and sectoral allocation of FDI. Findings: A major finding of this study is that Greek FDI in Central and Eastern European Countries follow different patterns in terms of volume, sector and industrial activity, compared to the respective FDI in other EU countries Research limitations/implications: The firm level data used in this study refer to the specific year that each FDI was announced; In this respect one major limitation is that we cannot trace any increase of invested capital or disinvestment to subsidiaries which are already established. Originality/value: This paper contributes significantly to the existing literature since it is one of the few studies examining the total of a country’s outward FDI in the CEE Countries at sectoral level, using firm lever data in an extended time series extending both in pre-crisis and postcrisis periods.

Suggested Citation

  • Dimitris Giakoulas, 2021. "Trends and Patterns of Greek Outward FDI in CEE Countries," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 14(2), pages 14-28, September.
  • Handle: RePEc:tei:journl:v:14:y:2021:i:2:p:14-28
    as

    Download full text from publisher

    File URL: http://ijbesar.ihu.gr/docs/volume14_issue2/14_02_02.pdf
    Download Restriction: no

    File URL: http://ijbesar.ihu.gr/volume14_issue2.php
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter J. Buckley, 1992. "Studies in International Business," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-12174-8, November.
    2. Stella Karagianni, Lois Labrianidis, 2001. "The Pros and Cons of SMEs Going International: Greek Companies in Bulgaria," Eastern European Economics, Taylor & Francis Journals, vol. 39(2), pages 5-28, March.
    3. Slavo Radosevic & Andrew Roziek, 2005. "Foreign Direct Investment and Restructuring in the Automotive Industry in Central and East Europe," UCL SSEES Economics and Business working paper series 53, UCL School of Slavonic and East European Studies (SSEES).
    4. Jonathan Jones & Ilona Serwicka & Colin Wren, 2020. "Motives for foreign direct investment location in Europe and EU enlargement," Environment and Planning A, , vol. 52(8), pages 1681-1699, November.
    5. Patrick F. R. Artisien & Peter J. Buckley, 1992. "Joint Ventures in Yugoslavia: Opportunities and Constraints," Palgrave Macmillan Books, in: Studies in International Business, chapter 7, pages 103-130, Palgrave Macmillan.
    6. Gheorghe H. Popescu, 2014. "FDI and Economic Growth in Central and Eastern Europe," Sustainability, MDPI, vol. 6(11), pages 1-15, November.
    7. Dimitris Giakoulas & Constantina Kottaridi, 2020. "Internationalization Strategies of the Greek MNEs during the Pre-Crisis Period: An Econometric Research Based on the OLI Model," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(1-2), pages 128-150, January-J.
    8. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    9. Maria Birsan & Anuţa Buiga, 2009. "FDI Determinants: Case of Romania," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 15(4), pages 726-736, February.
    10. Djordje Popov, 2004. "Privatization and Foreign investments: The Case of Serbia and Montenegro," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 11(3), pages 196-209, December.
    11. Kamaras, Antonis, 2001. "A capitalist diaspora: the Greeks in the Balkans," LSE Research Online Documents on Economics 3327, London School of Economics and Political Science, LSE Library.
    12. Jesmin Rahman & La-Bhus Fah Jirasavetakul, 2018. "Foreign Direct Investment in New Member State of the EU and Western Balkans: Taking Stock and Assessing Prospects," IMF Working Papers 2018/187, International Monetary Fund.
    13. Aristidis Bitzenis & John Marangos, 2007. "Globalization and the Integration-Assisted Transition in Central and Eastern European Economies," Journal of Economic Issues, Taylor & Francis Journals, vol. 41(2), pages 427-434, June.
    14. Kottaridi, Constantina & Giakoulas, Dimitris & Manolopoulos, Dimitris, 2019. "Escapism FDI from developed economies: The role of regulatory context and corporate taxation," International Business Review, Elsevier, vol. 28(1), pages 36-47.
    15. Vassilis Monastiriotis & Achilleas Tsamis, 2007. "Greece’s new Balkan Economic Relations: policy shifts but no structural change," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 01, Hellenic Observatory, LSE.
    16. Krugman, Paul & Venables, Anthony J, 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers 363, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitris Giakoulas & Constantina Kottaridi, 2020. "Internationalization Strategies of the Greek MNEs during the Pre-Crisis Period: An Econometric Research Based on the OLI Model," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(1-2), pages 128-150, January-J.
    2. Liu, Haiyun & Islam, Mollah Aminul & Khan, Muhammad Asif & Hossain, Md Ismail & Pervaiz, Khansa, 2020. "Does financial deepening attract foreign direct investment? Fresh evidence from panel threshold analysis," Research in International Business and Finance, Elsevier, vol. 53(C).
    3. Piotr Ciżkowicz & Andrzej Rzońca & Stanisław Umiński, 2013. "The determinants of regional exports in Poland -- a panel data analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 25(2), pages 206-224, June.
    4. Tafadzwa Matiza & Sandra Perks, 2022. "The tourism – Foreign direct investment nexus: Empirical evidence from Zimbabwe (2009–2015)," Tourism Economics, , vol. 28(4), pages 1059-1079, June.
    5. Filippov, Sergey & Kalotay, Kalman, 2009. "Foreign Direct Investment in Times of Global Economic Crisis: Spotlight on New Europe," MERIT Working Papers 2009-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Utz Schäffer & Matthias D. Mahlendorf & Jochen Rehring, 2014. "Does the Interactive Use of Headquarter Performance Measurement Systems in Foreign Subsidiaries Endanger the Potential to Profit from Local Relationships?," Australian Accounting Review, CPA Australia, vol. 24(1), pages 21-38, March.
    7. Dierk Herzer & Philipp Hühne & Peter Nunnenkamp, 2014. "FDI and Income Inequality—Evidence from Latin American Economies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 778-793, November.
    8. Thi Xuan Thu Nguyen & Javier Revilla Diez, 2017. "Multinational enterprises and industrial spatial concentration patterns in the Red River Delta and Southeast Vietnam," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 101-138, July.
    9. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-46.
    10. Taguchi, Hiroyuki & Murofushi, Harutaka, 2014. "International production networks in ASEAN economies," MPRA Paper 64409, University Library of Munich, Germany.
    11. Rubini, Lauretta & Pollio, Chiara & Spigarelli, Francesca & Lv, Ping, 2021. "Regional social context and FDI. An empirical investigation on Chinese acquisitions in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 402-415.
    12. Mh Bala Subrahmanya, 2017. "HOW DID BANGALORE EMERGE AS A GLOBAL HUB OF TECH START-UPs IN INDIA? ENTREPRENEURIAL ECOSYSTEM — EVOLUTION, STRUCTURE AND ROLE," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    13. Viengsaythong DALASENG & NIU Xiongying & Khaysy SRITHILAT, 2022. "Cross- Country Investigation of the Impact of Trade Openness and FDI on Economic Growth: A Case of Developing Countries," International Journal of Science and Business, IJSAB International, vol. 9(1), pages 49-73.
    14. Amar Gande & Kose John & Vinay B. Nair & Lemma W. Senbet, 2020. "Taxes, institutions, and innovation: Theory and international evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1413-1442, December.
    15. Bartha, Zoltán & S. Gubik, Andrea, 2014. "SME Internalisation Index (SMINI) Based on the Sample of the Visegrad Countries," MPRA Paper 57382, University Library of Munich, Germany, revised 10 Jul 2014.
    16. Grazia Ietto-Gillies, 2020. "Digitalization and the Transnational Corporations," Working Papers 45, Birkbeck Centre for Innovation Management Research, revised Feb 2020.
    17. John Cantwell, 2014. "A commentary on Grazia Ietto-Gillies' paper: 'The Theory of the Transnational Corporation at 50+'," Economic Thought, World Economics Association, vol. 3(2), pages 1-58, September.
    18. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    19. Ayamba Emmanuel Caesar & Chen HaiBo & Thomas Bilaliib Udimal & Andrew Osei-Agyemang, 2018. "Foreign Direct Investment, Growth of Output Indicators and Economic Growth in China: Empirical Evidence on Causal Links," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 315-322.
    20. Woohyuk Kim & Miae Lee & Chunghee Lee & Sungsoo Kim, 2022. "The Effects of Business Strategy and Organizational Culture of Korean Companies on Market Satisfaction: The Case of the African Market," Sustainability, MDPI, vol. 14(11), pages 1-10, May.

    More about this item

    Keywords

    FDI; Multinational Enterprises; CEEC; internationalization; Greece; debt crisis;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:14:y:2021:i:2:p:14-28. 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: . General contact details of provider: https://edirc.repec.org/data/dbikagr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kostas Stergidis (email available below). General contact details of provider: https://edirc.repec.org/data/dbikagr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.