Foreign Direct Investment Attraction in Central, Eastern and South-Eastern Europe: the Importance of Public Policy
Foreign Direct Investment Attraction in Central, Eastern and South-Eastern Europe: the Importance of Public Policy

Summary/Abstract: The paper enhances the discussion about the determinants of foreign direct investment (FDI) in Central, Eastern and South-Eastern European countries and the ability of public policy to influence their FDI attractiveness. Based on data for 15 countries in 2013 and 2017, we build a composite index, which allows us to rank countries in terms of their overall FDI attractiveness, as well as its most important imensions, such as institutional framework, infrastructure endowment, labour force quality and cost competitiveness. In addition to allowing comparison between economies across these dimensions, the results reveal areas in which some countries need improvement so that they can attract more FDI.

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