The determinants of Greek foreign direct investments in southeast European countries

Abstract

The radical socio‐economic and political reform in Southeast Europe initiated a large number of investment projects undertaken by Greek companies. Firms with no prior international experience decided to enter markets with quite adverse characteristics. The purpose of this article is to offer some reasoning for the increased interest of the Greek companies for the Balkan markets, as well as to evaluate the factors affecting the respective Foreign Direct Investment (FDI) flows.

Keywords:

• Greece
• southeast Europe
• investment

Notes

1. FDI may be defined as the transfer by a firm of capital and other resources into a foreign business venture with the respect of two criteria: (a) long‐term relationship between the direct investor and the entity abroad, and (b) significant degree of influence on this entity’s management (OECD 1999).