engleski

Foreign direct investment in European transition economies – The role of regulations, corruption and cooperation

Foreign direct investment represents an additional source of foreign capital for a given recipient country, especially for transition economies, and broadens the access to foreign markets. In order to utilize positive externalities of FDI, and to subsequently have an impact on the growth of GDP, recipient countries acquire resources to influence the reorganization of local companies, management processes in the context of an educated workforce, further investment in research and development, technology transfer as well as know-how transfer. All of the aforementioned helps in creating a competitive advantage. The first part of the paper provides a literature review on the topic of FDI in CEE countries. Second part of the paper is testing research hypotheses regarding: 1) design of bureaucratic infrastructure and its influence on FDI 2) level of corruption 3) para-fiscal and tax levies ; 4) modernization of operations as a result of FDI and 5) infrastructure investment as stimuli for employment in small and medium-sized enterprises (SME).

cooperation; corruption; foreign direct investment; regulations; transition economies

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