Work

Institution Building and the Integration of Eastern Europe in International Production

Year: 2000

Type: book

Abstract: Using a dataset detailing FDI flows from market economies to transition economies we examine two aspects FDI inflow determinants given insufficient prior attention: labour costs and institutional development.We find low unit labour costs and aggregate institutional development enhance FDI receipts.Examining disaggregated development indicators identifies specific institutions that positively influence FDI: private sector development, banking sector reform, price, foreign exchange and trade liberalisation, and legal development.Conversely we find non-bank financial sector development and competition policy do not enhance FDI.Our analysis highlights that Russian FDI receipts have suffered from a gap between extensiveness and effectiveness of legal reform.

Source: London Business School Research Online (London Business School)

Authors: Alan Bevan, Saul Estrin, Klaus E. Meyer

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure, Peace, justice, and strong institutions

Open Access status: green

Funder: Economic and Social Research Council

Award: G1389060252

OpenAlex ID: W1529268493

FWCI: 3.434

Cites: 32

Cited by: 47

Related to: 10