The Central and Eastern European Challenge for FDI

ABSTRACT

This paper addresses the issue of competition for FDI by the transition economies of Central and Eastern Europe. It reviews FDI trends in CEE, FDI competition, the policy framework and institutions such as inward investment agencies. This illustrates that certain patterns are emerging in FDI flows, economic policy, inward investment agencies and incentive regimes in response to competitive pressures resulting from the need to attract inward investment, and the European Union accession process. The analysis then considers the Celtic countries of Scotland, Wales and Ireland that have been restructuring their economies through inward investment for several decades. They evolved successful strategies for regional and inward development agencies that may provide lessons for the countries of Central and Eastern Europe.

Key Words:

• FDI
• competition
• Celtic periphery
• Central and Eastern Europe