IDEAS home Printed from
   My bibliography  Save this paper

Short-lived Recovery


  • Gabor Hunya

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Monika Schwarzhappel

    () (The Vienna Institute for International Economic Studies, wiiw)


Content New coverage Kazakhstan Turkey The first part of the publication contains an analysis of the latest FDI trends. The analysis highlights the temporary recovery of FDI in 2011. The second part of the publication contains two sets of tables Tables I total flow and stock data, FDI flow by form and FDI income, FDI per capita and other FDI reference parameter (2003-2011) Tables II detailed FDI data by economic activity and by country (last four years) The main sources of data are the central banks of the individual Central, East and Southeast European countries. General Description (PDF) Abstract FDI continues to be of great significance for the development of the former transition economies. The domestic engines of economic growth are still weak, and fiscal consolidation provides a drag on the economies. The short-lived recovery in 2011 was based mainly on external demand, which upgraded the importance of foreign investors, as they generate a major part of exports. The first part of this report, following detailed methodological explanations of FDI related terminology, provides an analysis of the latest FDI trends in 22 CESEE countries. The strongest growth in FDI in 2011 was observed in the SEE countries (64%) following a year with extremely low inflows. The growth of FDI in the NMS was 26% and in the CIS 18%, though both regions still recorded significantly lower amounts than in 2008. FDI inflows declined in only five countries, in line with the general upswing in business sentiment and economic growth, at least up until the fourth quarter of the year. Methodological problems have been identified that can distort the reporting of the home countries and economic sectors in terms of FDI flows and stocks. Special purpose entities, which are often financial holdings registered in the Netherlands and classified under ‘other business activities’, are the main sources of distortion. Home country statistics and greenfield project data suggest that Austria is the second-biggest investor in the NMS and the biggest in the SEE – one place above its ranking based on FDI stocks statistics. Also, if the Bank of Russia were to subtract the flows of Russian capital via offshore locations from the FDI statistics, Russian FDI would shrink to about a third of what is currently reported. Forecasts for economic growth and first quarter trends in FDI flows and greenfield projects suggest a setback for FDI in most CESEE countries in 2012, with the possible exceptions of Russia, Estonia and Croatia. The second part of this report contains two sets of tables the tables in Part I cover FDI flow and stock data, FDI flows by form and related income; the tables in Part II provide detailed FDI data by economic activity and country. The main sources of data are the central banks of the individual Central, East and Southeast European countries. Examples Table of contents (PDF Related Publication The CD-ROM version contains Excel, CSV, TSV, HTML data (time series from 1990 onwards) PDF version of the hardcopy Available time series (XLS) wiiw Database on Foreign Direct Investment 2012 CD-ROM

Suggested Citation

  • Gabor Hunya & Monika Schwarzhappel, 2012. "Short-lived Recovery," wiiw FDI Reports 2012-05, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:fdirep:fdi:2012-05

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Magdolna Sass & Gábor Hunya, 2014. "Escaping to the East? Relocation of business activities to and from Hungary, 2003–2011," IEHAS Discussion Papers 1407, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    2. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 4, London School of Economics / European Institute.
    3. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," LEQS – LSE 'Europe in Question' Discussion Paper Series 64, European Institute, LSE.
    4. Ana S. Trbovich & Jana Subotić & Jasna Matić, 2013. "Foreign Direct Investment As Export Facilitator In Serbia’S Apparel Industry," Serbian Association of Economists Journal, SAE - Serbian Association of Economists, issue 5-6, pages 339-353, August.
    5. Estrin, Saul & Uvalic, Milica, 2013. "Foreign direct investment into transition economies: are the Balkans different?," LSE Research Online Documents on Economics 53180, London School of Economics and Political Science, LSE Library.

    More about this item


    foreign direct investment; balance of payments; income repatriation; statistics; new EU Member States; Southeast Europe; CIS;

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population


    Access and download statistics


    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:wii:fdirep:fdi:2012-05. 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: (Customer service). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

    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.