Gravity factors explain a large part of Foreign Direct Investment (FDI) inflows in Southeastern Europe - a region not comprehensively covered before in econometric studies - but host-country policies also matter. Key are policies that affect relative unit labor costs, the corporate tax burden,...

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...

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 uses dynamic panel data methods to examine the political indicators and governance quality indicators as determinants of foreign direct investment (FDI) into the Balkan and non-Balkan countries in transition. Our empirical model shows that the determinants, such as political terror...

The transition economies in Europe and the former Soviet Union between 1991 and 1999 differed widely in terms of total capital flows and the share and composition of private flows. With some exceptions (notably Russia), the main source of private inflows was foreign direct investment. Portfolio...

This Paper examines the importance of agglomeration economies and institutions vis-à-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 1990-98, we find that the main...

Using recent regional data from Russia, the pattern of trade of Russia’s regions with the CIS and rest of the world (non-CIS) is examined using a series of gravity equations. Some evidence of shifting trade patterns toward non-CIS countries is found, but trade still has an inward orientation...

This paper examines the importance of agglomeration economies and institutions vis-à-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...

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...

The transition economies in Europe and the former Soviet Union between 1991 and 1999 differed widely in terms of total capital flows and the share and composition of private flows. With some exceptions (notably Russia), the main source of private inflows was foreign direct investment. Portfolio...