Foreign Direct Investments as Initiators of Change: The ”Swedmilk” dairy case- Reasons behind the failure
Institutional problems and the corruptive use of social capital give ground for misuse of institutional gaps and cause intentional failures for financial benefits. Based on social capital theory and transaction cost economics (TCE) this paper describes how the institutional environment in the Former Yugoslav Republic of Macedonia (FYROM), affects success or failure of business endeavors, such as the Swedmilk case. Foreign Direct Investments (FDI’s) are expected to be the drivers of positive economic development for economies in transition. Hence, the major question addressed in this paper is: How does a Greenfield foreign direct investment of 25 million Euros, manage to collapse in such a short period? The paper also describes the “official” plans and actual outcomes of the dairy, as well as the situation in the dairy sector before and after the Swedmilk failure. The financial problems occurred in October 2008, so the case of Swedmilk is quite recent and has not been included in any kind of research. Being a recent case the real implications on the dairy farming and sector are yet to be explored.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
- Svendsen, Gert Tinggaard, 2003. "Social Capital, Corruption and Economic Growth: Eastern and Western Europe," Working Papers 03-21, University of Aarhus, Aarhus School of Business, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:116092. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.