After seven years of transformation it is getting more and more difficult to blame the communist heritage for the state of the financial markets in the ten Central European countries which are candidates for EU membership. Only Hungary and Estonia have made sufficient progress in financial...

With systemic change in Central East European countries (CEECs), foreign direct investment (FDI) became an important factor for the transition economies. FDI not only played a leading role in privatisation in most transition countries. FDI is also widely assumed to spur restructuring in terms of...