BEZPOŚREDNIE INWESTYCJE ZAGRANICZNE W KRAJACH EUROPY ŚRODKOWO-WSCHODNIEJ W WARUNKACH NIESTABILNOŚCI
FOREIGN DIRECT INVESTMENTS IN CENTRAL AND EASTERN EUROPEAN COUNTRIES IN CONDITIONS OF INSTABILITY

Summary/Abstract: The purpose was to diagnose the scale and dynamics of changes in foreign direct investment (FDI) inflows in a group of Central and Eastern European countries (EU-10) under the conditions of the modern VUCA economy - volatility, uncertainty, complexity and ambiguity, especially with regard to the complexity of these countries' jurisdictions and the level of quality of governance. UNCTAD data in 2019-2023, Global Business Complexity Index data and Worldwide Governance Indicators were used. In 2020 EU recorded a significant decline in FDI inflows, especially in Slovakia. Some countries (Bulgaria and Hungary) recorded an increase, while Poland maintained its 2019 investment level. Between 2022 and 2023, FDI inflows continued to decline, especially in Slovakia and Slovenia, while Estonia, thanks to its liberal investment policy, recorded an increase, although it did not reach pre-pandemic levels. Among countries with the complex regulations were 7 of the EU-10. Changes in FDI screening policies within the EU were aimed at protecting the strategic interests, leading to a reduction in investment inflows and a deterioration in relations with third countries. The quality of governance had a significant impact on the attractiveness. In terms of the quality of government regulation, Estonia remains a leader.

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