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Distribution of Foreign Direct Investment among Transition Economies in Central and Eastern Europe

Joel I. Deichmann
Bentley University - Department of International Studies



Post-Soviet Geography and Economics, Vol. 42, No. 2, pp. 142-152, 2000

Abstract:     
This paper presents a regression model designed to explain the distribution of foreign direct investment (FDI) in the countries of Central and Eastern Europe. Locational variables are identified from geography and economics literatures on location theory and foreign direct investment. The dependent variable is cumulative value of investments in each host country, accounting for initial outlays as well as subsequent investments and reinvested profits. The results identify the most important determinants of FDI in the region (trade volume, followed by investment climate and density of transportation infrastructure).

JEL Classifications: C10, E22, O16, O52

Accepted Paper Series

Date posted: April 12, 2001 ; Last revised: June 01, 2003

Suggested Citation

Deichmann, Joel I., Distribution of Foreign Direct Investment among Transition Economies in Central and Eastern Europe. Post-Soviet Geography and Economics, Vol. 42, No. 2, pp. 142-152, 2000. Available at SSRN: http://ssrn.com/abstract=266543


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Joel I. Deichmann (Contact Author)
Bentley University - Department of International Studies ( email )
United States
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