Foreign direct investment of Central and Eastern European countries, and the investment development path revisited

The present study investigates long-term developments in inward and outward FDI of 10 Central and Eastern European (CEE) countries using Dunning’s investment development path (IDP) paradigm as a theoretical framework. Its main purpose is to determine how far the CEE countries have progressed along their IDPs since the beginning of transition. The results show that half of the analyzed countries have already reached Stage 3 of the IDP, while the other half are either firmly in Stage2 or are approaching Stage 3. With some notable exceptions, the study points to conformity of the analyzed IDP trajectories with Dunning’s model.