This book examines how foreign direct investment (FDI) inflows to
Central and Eastern Europe have changed after the Great Recession.
It argues that beyond their cyclical effects, the economic crisis
and the changing competitiveness of Central and Eastern European
countries have had structural impacts on FDI in the region. FDI has
traditionally been viewed as the key driver of national
development, but the apparent structural shift means that focusing
on cheap labour as a competitive advantage is no longer a viable
strategy for the countries in the region. The authors argue that
these countries need to move beyond the narrative of upgrading
(attracting FDI inflows with increasingly higher value added), and
focus on ensuring greater value capture instead. A potential way
for doing this is by developing the conditions in which innovative
national companies can emerge, thrive and eventually develop into
lead firms of global value chains. The book provides readers with a
highly informative account of the reasons why this shift is
necessary, as well as diverse perspectives and extensive
discussions on the dynamics and structural impacts of FDI in
post-crisis Central and Eastern Europe.
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