engleski

Growth and convergence in European transition economies

Foreign direct investment (FDI) with its growth- enhancng capacity, has played a significant role in setting transition economies onto the path of convergence with its more affluent neighbors, which is enhanced by their recent membership in one of the richest clubs in the world, the European Union. The differential impact of FDI in terms of its sectoral composition on productivity and efficiency of the host country, as well as its propensity to stimulate institution building, are changing both economic and political landscapes in the Central and Eastern European and Baltic region. The implicit requirewments that FDI poses for the receiving country together with the Eu-accession driven reforms fit together ina mutually reinforcing system that is helpng the goals of transition and the convergence process. The achievement of both goals is seen as the best guarantor of peace and security in the Central and Eastern European and Baltic region.

growth; transition economies; foreign direct investment

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