Description
Book SynopsisThis in-depth analysis of direct investment in transition economies provides not only original insights for economic policy in Central and Eastern Europe, but challenges some of the theoretical foundations of the multinational firm.
Foreign investment is important in promoting economic growth and development, and this book examines the determinants of foreign direct investment under the unique conditions of the transition from central planning to market economies. It begins by reviewing the business environment and the conditions facing foreign investors, and assessing the existing statistical and qualitative evidence. Dr Meyer then analyses the theoretical literature and extends this in an empirical analysis investigating the investment decision of firms entering Central and Eastern Europe. The book also critically examines transaction cost theory and the theory of the multinational firm under the special conditions of economic transition. It points to a reorientation of international business research which will need to focus on firms as organizations rather than firms as substitutes for imperfect markets.
Direct Investment in Economies in Transition will be essential reading for students and scholars of international business and transition economics. It will provide valuable insights for policymakers within the region about the forces driving foreign investment.
Trade Review'. . . I found this to be an interesting and informative book, whose analysis should be of interest to all economics and international business researchers concerned with the problems of direct foreign investment in post-communist economies. It represents a contribution to the economics of transition literature, both from theoretical and empirical points of view.'Table of ContentsContents: 1. Introduction 2. Direct Foreign Investment in Central and Eastern Europe 3. Determinants of Direct Investment: A Review of the Literature 4. Transaction Cost Analysis of Direct Foreign Investment 5. The Enterprise Survey 6. The Determinants of West–East Business 7. Determinants of Direct Investment: Testing Transaction Cost Theory 8. Form of Ownership and Mode of Entry 9. Conclusions Bibliography Index
