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          FDI-assisted Development in the Light of the Investment Development Path Paradigm: Evidence from Central and Eastern European Countries (English)
          Article by Boudier-Bensebaa, Fabienne, 2008, 32 pages
          Categories: Globalization and Development Strategies, Investment

          This article analyzes the case of the Central and Eastern European countries (CEECs) as an interesting case of FDI-assisted development strategies in transition economies. CEECs saw a surge of inward FDI over the past decade and a recent increase in outward FDI from the region. The analysis is based on the investment development path (IDP) framework. First, a cluster analysis is used to divide the CEECs into more homogeneous groupings. Econometric and statistical analyses are then carried out to delineate the different IDPs followed by the CEECs. The results indicate that (i) the position of the CEECs is at stage one or two (out of five stages) of the IDP; (ii) the CEECs are diverging from EU15 in terms of outward investment position but converging in terms of GDP; (iii) the IDPs within the five sub-groups are converging, and (iv) within the group of the CEECs less developed and more developed countries converge in terms of outward investment position but not in terms of GDP.