Foreign Direct Investment in Central and Eastern Europe

This book examines how foreign direct investment (FDI) inflows to Central and Eastern Europe have changed after the Great Recession. It argues that beyond their cyclical effects, the economic crisis and the changing competitiveness of Central and Eastern European countries have had structural impacts on FDI in the region. FDI has traditionally been viewed as the key driver of national development, but the apparent structural shift means that focusing on cheap labour as a competitive advantage is no longer a viable strategy for the countries in the region. The authors argue that these countries need to move beyond the narrative of upgrading (attracting FDI inflows with increasingly higher value added), and focus on ensuring greater value capture instead. A potential way for doing this is by developing the conditions in which innovative national companies can emerge, thrive and eventually develop into lead firms of global value chains. The book provides readers with a highly informative account of the reasons why this shift is necessary, as well as diverse perspectives and extensive discussions on the dynamics and structural impacts of FDI in post-crisis Central and Eastern Europe.

Introduction: The Changing Patterns of FDI Post-crisis Crossroads for FDI in CEE Czech FDI Performance: Between Global Value Chains and Domestic Reforms Foreign Direct Investment in Slovakia: The Tatra Tiger Gone Tame? Latecomers May Be Admitted: Foreign Direct Investment Between the CEE Countries Upgrading and Value Capture in Global Value Chains in Hungary: More Complex than What the Smile Curve Suggests Inequalities of Accumulation: The Case of Central and Eastern Europe Multinational Banks: Protective Factors of Financial Stability in Central and Eastern Europe? Investment Promotion in the Visegrad Countries: A Comparative Analysis Competitiveness and Investment Promotion in Bulgaria and Romania Conclusions: Prospects for FDI-Led Development in a Post-crisis World