Based on a spatially augmented gravity model the current paper isolates spatial interrelationships in Foreign Direct Investment (FDI) to Central and Eastern European Countries (CEECs) not only across the destination but also across the origin country dimension of FDI. Results show that: (i)...

The present paper develops a general production function framework, augmented with two institutional variables namely, bureaucracy and corruption, on 28 transition economies over the period 2000 to 2015. We use various econometric specifications and apply both the Fixed Effects as well as the...

This paper examines the importance of agglomeration economies and institutions vis-a-vis initial conditions and factor endowments in explaining the locational choice of foreign investors. Using a unique panel data set for 25 transition economies between 1990 and 1998, we find that the main...

Although the theoretical literature has identified various sizeable benefits from foreign direct investment inflows (FDI), the empirical literature has been unable to establish a positive and significant impact of FDI on the rates of economic growth of host countries. One reason for this...

Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in transition economies, including in Southeastern Europe—a region not comprehensively covered before in econometric studies—but host country policies also matter. Key are policies that affect unit labor costs,...

This paper investigates the importance of factor endowment vis-à-vis institutions in explaining the locational choice of foreign investors during the 1990s. Using dynamic panel estimation on data for transition economies, we find that low labour costs, bureaucratic efficiency ("institutions"),...

This study investigates the dynamics of foreign direct investment (FDI) inflows into Central and Eastern European countries (CEECs) using panel data (1994-2020) analysis methods such as fixed effects, fully modified ordinary least squares (FMOLS) and random effects. Specifically, the study...

This paper examines the impact of membership in the European Union on foreign direct investments (FDI). In contrast to previous studies, the overall effect of EU membership is disaggregated by countries that joined the EU before 2004 (EU15) and those that joined after 2004 (CEE). This...

The main aim of the article was to analyze the motives behind the FDI decisions of Chinese companies' capital engagement in Central and Eastern Europe. The article examines the applicability of existing theoretical concepts towards Chinese outward foreign direct investment (OFDI). Chinese OFDI...

Recent evidence suggests that regional economic integration provides an important stimulus not only to trade, but also to FDI. In contrast, the available theory on FDI does not yet provide empirically testable propositions on the effects of concurrent trade and investment liberalisation....