Development of the foreign direct investments in the transitive economies: Example of Central-European Countries (CEC)

The paper focuses on the foreign direct investments (FDI) in the Central Europe and on the development changes among the individual countries. The paper follows from the work (Gauselmann et al. 2011) dealing with the development of the transient economies with focus on the role of the FDI. The objective of the paper is identification of the impact of the FDI on the economic growth and economic performance during the post-transformation era where differences among the countries at the beginning of the monitored period in 2000 and at the end of 2011 are evaluated based on data of United Nations Conference for Trade and Development. The development of FDI following 2000 was positively influenced by new system of the investment incentives for the foreign investors, accession of the countries to the European Union, it increased their credibility for foreign investors. High inflow of foreign direct investment ended with beginning of the economic crisis in 2008. Current trend in FDI is below its level before the economic crisis, and their amount increase only by few percent per year.