What kind of theory for Foreign Direct Investment (FDI) in Bulgaria?

The purpose of this paper is to present a theoretical framework to analyse and understand the reasons behind Foreign Direct Investment (FDI) decisions in Bulgaria, during its transition to a market economy. The analysis points out that the process concerning investment decisions in Bulgaria has been a distinctly dynamic and complex process, which was affected by diverse factors at different stages of transition. More precisely, over time and as the transition reforms progressed, many of the location challenges turned into location advantages that contributed to the attraction of significant amounts of FDI, especially in the last few years before the global economic crisis struck.