Publication

This paper examines the determinants of foreign direct investment (FDI) into Central and Eastern European countries. The authors show that traditional determinants such as market potential, low relative unit labor costs, a skilled workforce and relative endowments have significant and plausible effects. In addition, they stress that transition-specific factors such as the level and method of privatization and the country risk play an important role in determining the flows of FDI into the analyzed countries and help explain the different attractiveness for FDI of the individual countries.