The gravity model of trade is used to assess the economic consequences of new borders, which arose in the wake of break-ups of multinational federations in Eastern Europe. The intensity of trade relations among the constituent parts of Czechoslovakia, Soviet Union and the Baltics was very high...

This paper examines the effect of transition and of political instability on FDI flows to the transition economies of Central Europe, the Baltics and the Balkans. We find that FDI to transition economies unaffected by conflict and political instability exceed those that would be expected for...

This paper analyses regional growth in Eastern Europe in the second half of the 1990s, when regional disparities sharply increased. We aim to identify the factors behind growth and investigate in particular the role of (foreign) investment, education and innovation as well as geographical...