East European Challenges for FDI: A View from the Celtic Periphery

The transition economies of Central and Eastern Europe (CEE) are engaged in fierce competition for foreign direct investment (FDI). This paper examines FDI trends in CEE, FDI competition, the policy framework, and institutions such as inward investment agencies. It identifies patterns in FDI flows, economic policy, and FDI incentive regimes in response to competitive pressures and the EU accession process. The Celtic ‘tiger’ economies of Scotland, Wales and Ireland have been restructuring their economies through inward investment for several decades. They evolved successful strategies for regional and inward investment agencies that may provide lessons for Central and Eastern Europe.