Explaining different FDI inflows in Eastern European countries with reference to economic history
by Ioannis-Dionysios Salavrakos
Global Business and Economics Review (GBER), Vol. 8, No. 1/2, 2006

Abstract: The aim of the paper is to provide an alternative explanation of current flows of FDI to the various Eastern European Countries. The aim is to enrich the current literature on economics of transition with a different perspective. Thus, the author argues that the current situation is a reflection of the past. The countries of Central Eastern Europe which nowadays have attracted vast amounts of FDI from western countries had historically close economic ties with the developed capitalist economies. On the other hand, the geographical region of Eastern Europe/Black Sea which did not have strong economic links with the developed capitalist countries in the past failed to establish them in the current era as well. Interestingly the isolated regions of Eastern Europe had extensive ties with the Greek and Turkish capital in the past and these ties have been once again reestablished.

Online publication date: Tue, 24-Jan-2006

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