Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/17819 
Year of Publication: 
2003
Series/Report no.: 
Kiel Working Paper No. 1143
Publisher: 
Kiel Institute for World Economics (IfW), Kiel
Abstract: 
This paper uses dynamic panel data methods to examine the determinants of Foreign Direct Investment (FDI) into Central and Eastern European Countries (CEECs). Our empirical model shows that the traditional determinants, such as market potential, low relative unit labor costs, a skilled workforce and relative endowments have significant and plausible effects. In addition, transition-specific factors such as the level and method of privatisation, and the country risk, play an important role in determining the flows of FDI into the CEECs and help explain the different attractiveness for FDI of the individual countries.
Subjects: 
Transition economies
FDI
Panel estimation
JEL: 
F21
F23
P33
Document Type: 
Working Paper

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