FDI in the eec-10: a comparative analysis

Abstract

The present paper examines the evolution of FDI flows generated and received by ten new member states of the EU (NMS minus Cyprus and Malta, EEC-10) during the period 2000-2011, with the aim to identify their dynamics, composition and performance. Taking into consideration the EEC-10’ high dependence on the Internal Market and the weaknesses of the national companies, the authors demonstrate that the strengthening of the national firms and the diversification of the trade and investment flows are crucial for the future development of each EEC-10. In the same context, the authors point to the fact that a strong impetus to the EEC-10 near-term development could also come from the absorption of European cohesion and structural funds.

Keywords

• EEC-10
• FDI
• Internal Market
• FDI/GDP index
• FDI/external debt index
• FDI contribution index
• FDI performance index
• FDI regulatory restrictiveness index