EU integration-driven investment networking: Outward FDI of candidate countries

Commission of the European Communities

Background: Developments confirm the stage development theory of outward FDI (OFDI) since it has started to grow from Central European countries (CECs) recently facilitating transition and EU accession. Yet CECs are still not aware of the need to internationalise. There is no adequate data and knowledge about outward FDI in CECs. Objectives: a) to update, broaden and deepen existing knowledge on OFDI and to theoretically generalise it, b) to evaluate how outward FDI could become more instrumental in strengthening the competitiveness of transition economies, c) to consider how outward FDI facilitates integration into the EU, and d) to identify the best practices for making outward FDI developmentally and EU integration instrumental at the macro and micro firm levels. Methodology: a) macro and micro level statistical and multivariate methods (including cluster, regression analysis) supplemented by network analysis based on balance of payments data and results of an own survey, issue and case studies. Outputs: a) studies of OFDI by the transition countries, b) comprehensive study/book on OFDI by five countries, c) study on the validity of the stage model in the case of transition economies including an analysis of 'born multinationals', c) comparative evaluation of inward-outward links in partner countries, d) suggestions for the best practices for strategies and policies for managing OFDI (macro and micro levels), and e) recommendations for improving statistical coverage.