Foreign Direct Investments. Does the Form of Entry Matters? Evidence from Central and Eastern Europe.

If most of the literature regarding foreign direct investments (FDI) investigates the trend of FDI, the motives and their effects on development, little has been analyzed regarding the composition of FDI and the influence it has on the evolution of FDI’s trend .The current paper tries to analyze this issue in the case of Central and Eastern Europe Countries between 2000 and 2010. Equity capital proves to be the most stable form of capital, feature evident even during the financial crisis, where the drastic reduction of FDI in the region was determined most by fluctuations in the other two forms of FDI (meaning reinvested earning and inter- company loans)