CHINESE INVESTMENT IN CENTRAL EASTERN EUROPE AND THE WESTERN BALKAN

2021 ◽  
pp. 73-86
Author(s):  
SANJA FILIPOVIĆ ◽  
JELENA IGNJATOVIĆ

As part of the “Belt and Road Initiative”, China has established a platform for cooperation in the field of investment with 11 European Union countries in the region of Central and Eastern Europe and 5 countries in the Western Balkan (CEEWB-16). In addition to infrastructure projects, China has invested in this region in the form of foreign direct investments (FDI). The aim of this paper is to estimate the importance of Chinese investments for 16 countries in the CEEWB-16 region. Analyzing the placement of funds, it can be concluded that FDI are placed primarily in the countries of the region that are members of the EU, while investments in infrastructure projects are mainly directed to the countries of the Western Balkans, primarily in the transport sector. Infrastructure projects are financed by the governments of the countries borrowing from state-owned Chinese banks, and these loans have the character of public loans, but the conditions of borrowing also have commercial characteristics. In addition, the contractors of infrastructure projects are mainly Chinese companies, which largely employ their workers and import materials from China, so that the positive effect on the debtor's country are smaller. However, as the countries of the Western Balkans have limited access to European funds and a great need to invest in infrastructure, they see these investment projects as a development opportunity.

Subject Shifts in Chinese investment in Central-Eastern Europe. Significance Initial enthusiasm for China’s Belt and Road Initiative (BRI) in Central-Eastern Europe (CEE), driven by the region’s often critical need for infrastructure investment, has ebbed. Impacts Beijing’s interests will decide which investment opportunities are pursued in CEE. From the CEE side, China will not always receive favourable investment terms and EU cohesion is not necessarily under threat. Scepticism about the soundness of Chinese companies will rise after a number of well-publicised debt defaults.


Subject Chinese banks in Panama. Significance The world’s largest bank, the Industrial and Commercial Bank of China (ICBC), is likely to open its doors in Panama this year as part of a new era of cooperation between the countries following the Panamanian government’s decision last year to abandon its long-standing support of Taiwan and begin diplomatic relations with China. Impacts Chinese banks will be keen to tap into the financing opportunities offered by Panama’s investment projects. The Panamanian government will encourage these banks to participate in public tenders for infrastructure projects. Despite recent improvements, Panama’s banking sector will still expose incomers to considerable reputational risk.


Subject Chinese projects in Balkans. Significance China’s growing Belt and Road Initiative (BRI) footprint in South-Eastern Europe has put the EU and the United States on alert. Coupled with traditional Russian and Turkish influence in the region, Beijing’s economic diplomacy fuels fears of escalating geopolitical competition. Impacts Chinese investment projects will face greater EU scrutiny. Infrastructure development remains central to China’s presence but also raises concerns about high-level corruption and the rule of law. Unlike Russia, China will keep a low profile on political issues such as Kosovo.


Subject Prospects for Central-Eastern Europe in 2018. Significance The economic outlook for Central Europe and the Baltic states (CEB) for the first half of next year, at least, looks bright. The consumption-led rebound in GDP across CEB in the second half of 2017 will continue to drive economic performance in early 2018. For the Western Balkans, the dominant international issue will be the future of the EU, but the most significant developments will be on the domestic front as peoples and governments react to the EU’s ongoing travails.


Subject Prospects for Central-Eastern Europe in 2022. Significance Tensions with eastern neighbours could distract Brussels from democratic stagnation in several of the eleven eastern member states (EU-11). Vaccine hesitancy will remain high as governments fail to deal with rampant disinformation on the benefits of inoculation. In the Western Balkans, political crises will centre on Kosovo and Bosnia-Hercegovina (BiH), against the backdrop of weakening US and EU influence, distracted by other matters.


2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Constantinos CHOROMIDES

Foreign Direct Investment (FDI) is considered by scholars as a critical factor for economic growth and development. The recent economic crisis in the European Union (EU) has brought up again the discussion of the key drivers specific to the attraction of FDI. In addition to strict economic factor, the literature emphasises the role of institutions in a country as determinants in attracting FDI inflows. This study is one of the first to address the ownership strategy of multinational enterprises from the EU region undertaking FDI in former transitional economies in South (SEE) and Central Eastern Europe (CEE) using the concept of the quality of institutions. An analysis of the impact that the quality of market supporting institutions in determining ownership structure has of foreign affiliates in former transitional economies is attempted using an econometric model on institutional, regulatory, country specific and company level data based on a sample of 285 EU companies undertook FDI in 4 South and Central Eastern European countries during 1995-2015. We apply and advance the institution-based view of strategy by integrating it with resource-based and transaction cost considerations, incorporating three of the most important theoretical paradigms of international business studies.


2020 ◽  
Vol 17 (4) ◽  
pp. 499-509
Author(s):  
Ágnes Erőss ◽  
Monika Mária Váradi ◽  
Doris Wastl-Walter

In post-Socialist countries, cross-border labour migration has become a common individual and family livelihood strategy. The paper is based on the analysis of semi-structured interviews conducted with two ethnic Hungarian women whose lives have been significantly reshaped by cross-border migration. Focusing on the interplay of gender and cross-border migration, our aim is to reveal how gender roles and boundaries are reinforced and repositioned by labour migration in the post-socialist context where both the socialist dual-earner model and conventional ideas of family and gender roles simultaneously prevail. We found that cross-border migration challenged these women to pursue diverse strategies to balance their roles of breadwinner, wife, and mother responsible for reproductive work. Nevertheless, the boundaries between female and male work or status were neither discursively nor in practice transgressed. Thus, the effect of cross-border migration on altering gender boundaries in post-socialist peripheries is limited.


2004 ◽  
Vol 54 (3) ◽  
pp. 377-386
Author(s):  
Anita Pelle ◽  
László Jankovics

(1) The Halle Insitute for Economic Research (Institut für Wirtschaftsforschung Halle, IWH) in cooperation with the European University Viadrina, Frankfurt an der Oder held a conference on 13-14 May 2004 in Halle (Saale), Germany on Continuity and Change of Foreign Direct Investments in Central Eastern Europe. (Reviewed by Anita Pelle); (2) The University of Debrecen, Faculty of Economics and Business Administration in cooperation with the Regional Committee of the Hungarian Academy of Sciences and the Hungarian Economic Association organised an international symposium on the issue of Globalisation: Challenge or Threat for Emerging Economies on 29 April 2004 in Debrecen, Hungary. (Reviewed by László Jankovics)


Sign in / Sign up

Export Citation Format

Share Document