Financing development in Central and Eastern Europe. The case of foreign direct investments

This book was carried out amid the current global economic crisis overlapped by debt crisis in developed EU countries, processes which represent new challenges that need to be faced by economies of Central and Eastern Europe, whose development depends mainly on foreign investments.

 

The book is divided into four chapters: Chapter 1 – Progressive transformation of economic change – sets the conceptual framework of the whole work. The second chapter, Trends in the investment process, encompasses notions of globalization and explains in detail the motivations of foreign investors to choose a specific location like: resources, market efficiency, strategic assets, and explains as well the ways to penetrate the market. The last part of the chapter is given by an analysis of the advantages and disadvantages involved the presence of multinational firms in an economy and the controversy surrounding these investment operators. The third chapter, Investment component in European Union, is a description of the investment climate in Europe and Central and Eastern Europe emphasizing the aspects as strengths, weaknesses and opportunities of this region on the attractiveness for FDI. The last chapter – Determining FDI in the Central and Eastern Europe – is an econometric model of the determining factors of FDI and FDI. It starts with a large number of variables (22) which have been selected gradually using the panel method and the scenarios the most representative six relevant variables determining FDI.