Trade Balances of the Central and East European EU Member States and the Role of Foreign Direct Investment

Abstract This paper accounts for the main determinants of Foreign Direct Investment stocks to 5-South East European Countries and the 10-New Member States of the European Union countries by using an augmented Gravity Model, for the purpose of calculating the potential levels of FDI stock in Macedonia. The study takes into account country specific institutional factors that determine foreign investors’ decisions from 20 core OECD countries to invest in SEE-5 and EU-NMS-10 countries. From the results of the study we find that gravity factors (market size and distance), institutional related factors (control of corruption, corruption perception index, regulatory quality, transition progress and WTO membership) and other traditional determinants of FDI (schooling, bilateral exports) appear to significantly determine inward FDI stock to the SEE region and new EU member states. The GMM estimates suggest that bilateral FDI stock is subject to persistence effects. The study additionally confirms the relatively strong gravitational character of Macedonia’s inward FDI stock.

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The Attitudes of the European Union and China Towards Foreign Direct Investment: Implications for Bilateral Relations

Comparative Economic Research ◽

10.2478/cer-2019-0024 ◽

2019 ◽

Vol 22 (3) ◽

pp. 83-98

Author(s):

Janina Witkowska

Keyword(s):

Foreign Direct Investment ◽

Foreign Investment ◽

Direct Investment ◽

Member States ◽

Independent State ◽

Eu Countries ◽

Eu Member States ◽

Bilateral Relations ◽

New Eu Member States ◽

The Eu

The aim of this paper is to discuss new trends that have occurred in the policies of the EU and China towards foreign direct investment (FDI), to examine some implications of the EU‑China Comprehensive Agreement on Investment (CAI) – which is currently being negotiated – for their bilateral relations, and to assess the role which China’s “One Belt One Road’ (OBOR) initiative might play in its relations with the new EU Member States. The EU established freedom of capital movement with third countries; however, the introduction of the common investment policy has encountered some obstacles. These are related to investor protection and ISDS issues. In turn, China is carrying out an independent state policy towards foreign investment with limited liberalization of FDI flows. The negotiated EU‑China CAI is expected to create conditions conducive to bilateral foreign investment flows, and it might bring positive effects for their economies in the future. However, the progress made thus far in the negotiations is still limited. The relations between China and the new EU Member states (CEE countries) are characterized by common interests in the field of FDI flows. The new EU countries are interested in attracting Chinese FDI and seem not to show the fears that have arisen in the old EU countries.

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Foreign Direct Investment in New EU Member States from Central and Eastern Europe: An Investment Development Path Perspective

Internationalization of Emerging Economies and Firms ◽

10.1057/9780230363663_4 ◽

2012 ◽

pp. 64-86 ◽

Cited By ~ 1

Author(s):

Marian Gorynia ◽

Jan Nowak ◽

Piotr Tarka ◽

Radosław Wolniak

Keyword(s):

Foreign Direct Investment ◽

Eastern Europe ◽

Direct Investment ◽

Central And Eastern Europe ◽

Member States ◽

Development Path ◽

Eu Member States ◽

New Eu Member States

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Transformation of the Central and East European Passenger Car Industry: Selective Peripheral Integration through Foreign Direct Investment

Environment and Planning A Economy and Space ◽

10.1068/a34263 ◽

2002 ◽

Vol 34 (9) ◽

pp. 1685-1709 ◽

Cited By ~ 57

Author(s):

Petr Pavlínek

Keyword(s):

Foreign Direct Investment ◽

Central Europe ◽

Direct Investment ◽

Division Of Labour ◽

Local Economies ◽

Passenger Car ◽

Car Industry ◽

East European

The Central and East European (CEE) passenger car industry underwent major transformations through foreign direct investment (FDI) in the 1990s. The author demonstrates that the effects of FDI on the passenger car industry have been profound, but geographically uneven. To understand the different regional and local strategies of foreign car producers better, the author introduces a classification of FDI in the passenger car industry based on the degree of embeddedness in local economies and relationships to path dependency in the 1990s. The effects of FDI on selective peripheral integration of parts of CEE into the European car production system, as well as the role of Central Europe in the division of labour in the European passenger car industry, are also considered.

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Foreign Direct Investment Between Asian Developing Countries and the EU Member States: The Role of Integration Processes

Comparative Economic Research ◽

10.2478/cer-2013-0009 ◽

2013 ◽

Vol 16 (2) ◽

pp. 5-23

Author(s):

Janina Witkowska

Keyword(s):

European Union ◽

Developing Countries ◽

Foreign Direct Investment ◽

East Asia ◽

Direct Investment ◽

The European Union ◽

Member States ◽

Eu Member States ◽

Western Asia ◽

The Eu

This article discusses the conditions surrounding the flow of foreign direct investment (FDI) between the developing countries of Asia (East Asia, South-East Asia, Southern Asia, and Western Asia) and the countries with membership in the European Union (EU), including the so-called ‘new’ Member States (EU12). At the intra-regional and inter-regional levels, the flow is especially affected by the world economic crisis, which has effected changes in the positions of the analyzed countries on a global scale. The integration processes taking place in the EU also significantly affect the intensity of FDI flow within the group, while the processes taking place in the developing countries of Asia are not yet sufficiently enough advanced to significantly affect the flow of FDI. Inter-regional FDI flows take place between the subject regions and sub-regions. The observed phenomenon of emerging Asian net exporters of capital in the form of FDI to the European Union may be strengthened by the process of Asian integration. For the new EU Member States the developing Asian countries may constitute an alternative source of capital in the crisis conditions.

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