Investment attractiveness of Central and Eastern Europe for Western multinational firms in the post-Covid-19 era

The aim of this paper is to discuss the effects of the pandemic on the economies of CEE and on their attractiveness for Western investors. The study starts with a comparison of the characteristics of the 2009 financial crisis with the Covid-19 pandemic, outlines the main economic effects and discusses the impact on selected challenges that foreign multinational companies faced in 2019. A recent economic boom, a shrinking labor pool and rising labor costs, deteriorating institutions, antagonistic attitudes of local governments towards foreign investors, and the entry of new competitors, particularly Chinese ones, have shaped the business environment in the last years. Along these lines, the possible developments are outlined that foreign direct investors will face in the coming years in CEE.