Title: Is cluster development an explanatory factor of increased levels of FDI? Evidence from the case of Bulgaria

Authors: Ioannis-Dionysios Salavrakos, Zornitsa Vasileva Georgieva

Addresses: School of Natural Resources and Enterprises Management, University of Ioannina, 2 Seferi Street, Agrinio 30100, Greece. ' London Metropolitan University, 166-220 Holloway Road, London N7 8DB, UK

Abstract: This paper explains determinants of FDI levels in Bulgaria by comparing cluster theory and traditional theories of international production. The results obtained may add another perspective on future development of entrepreneurship in Bulgaria and other transition economies. The research stresses out that clusters, especially when backed up by government or local assistance, can contribute to inter-firm cooperation and networking, which eventually represents a necessary determinant of regional development.

Keywords: FDI; foreign direct investment; cluster theory; regional development; transition economies; Bulgaria; international production; entrepreneurship; government assistance; inter-firm cooperation; networking; economics; business research; clusters.

DOI: 10.1504/IJEBR.2010.035699

International Journal of Economics and Business Research, 2010 Vol.2 No.6, pp.461 - 478

Published online: 03 Oct 2010 *

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