Foreign Direct Investment in Transition Economies: Evidence from Energy Industry

Abstract

The paper presents econometric analysis of foreign direct investment inflows to transition economies. Panel data for 25 countries of Central & Eastern Europe and Commonwealth of Independent States suggests on differences in FDI determinants in these two regions. Energy industry is given deeper insight due to its importance in investment attraction. Empirical results reflect deeper research on resource seeking FDI to CIS (primarily Russia) where production and consumption of various energy types is considered. The paper also spills light on the history of economic though on international capital movement from Marx to Dunning.

Keywords: Foreign Direct Investment, International Economics, Multinational Corporations, Natural Resource Economics, Oil & Gas, Transition, CEE, CIS, Russia

JEL Classification: F21, Q39