This study aims at identifying the main determinants of Foreign Direct Investment (FDI) into the European regions. The theory of the determinants of FDI deals with the question on why firms become multinationals. Partial equilibrium studies suggest that in so doing firms try to internalize trade...

Growth empirics with institutional measures is performed for 25 transition countries overthe period 1990-95. Estimation results suggest that (particularly state) institutions aresignificant for growth and, especially, foreign direct investment (FDI), the latter in turnbeing important for the...