Estonian Outward Foreign Direct Investments

University of Tartu Economics & Business Administration Working Paper No. 9

58 Pages Posted: 17 Aug 2003

See all articles by Urmas Varblane

Urmas Varblane

University of Tartu - Faculty of Economics and Business Administration

Anne Reino

University of Tartu - School of Economics and Business Administration; Tartu University

Ele Reiljan

University of Tartu - Faculty of Economics and Business Administration

Rein Juriado

University of Tartu - Faculty of Economics and Business Administration

Date Written: 2001

Abstract

This paper aims to analyse the role of outward foreign direct investments in the Estonian economy. The research is based on the macro data provided by the Bank of Estonia and on the results obtained from 70 firms that responded to the survey conducted by the authors in autumn 2001. In the process of research the firms in the sample were classified as follows: by the type of investors (direct and indirect), by the type of investments (production, trade, other services), and by the age of affiliations. It allowed us to find interesting differences in the behaviour patterns of various investors. The survey revealed that market related motives appear to be predominant among the factors that make Estonian firms to invest abroad. The most important effects on the parent company are related to additional market shares gained abroad and enhanced exports. Investments into the other Baltic countries have been more in line with earlier expectations than those into the CIS or the European Union.

Keywords: outward foreign direct investment, Estonia, indirect investments, services

JEL Classification: F21, F23, P2

Suggested Citation

Varblane, Urmas and Reino, Anne and Reiljan, Ele and Juriado, Rein, Estonian Outward Foreign Direct Investments (2001). University of Tartu Economics & Business Administration Working Paper No. 9, Available at SSRN: https://ssrn.com/abstract=419824 or http://dx.doi.org/10.2139/ssrn.419824

Urmas Varblane (Contact Author)

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Road 4 - A226
Tartu
Estonia
+372 7 376 361 (Phone)
+372 7 376 327 (Fax)

Anne Reino

University of Tartu - School of Economics and Business Administration ( email )

Narva Road 18-4106
Tartu
Estonia
+37256257303 (Phone)

Tartu University ( email )

Ele Reiljan

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Rd. 4-A214
Tartu 51009, 51009
Estonia

Rein Juriado

University of Tartu - Faculty of Economics and Business Administration ( email )

Narva Rd. 4-A214
Tartu 51009, 51009
Estonia

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