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,...

With the start of the process of its transition to a market economy in early 1990, Romania joined the ranks of other reforming Eastern European countries. At the starting point of its reform program, however, Romania was in a deep economic and institutional crisis and had no experience in even...