Outward FDI from Greece and its policy context

With the fall of centrally planned economies in the Balkans, their liberalization and the opening of their borders to free trade and capital movements, Greece became more active in the generation of outward foreign direct investment (OFDI). Greece's OFDI stock increased from US$3 billion in 1990 to US$ 6 billion in 2000 and to US$38 billion in 2010. The Europeanization process of Turkey and the transition of the economies in the Balkans was accompanied by a gradual rise of FDI from Greece into those economies. More than half of Greece's OFDI stock — over US$ 20 billion in 2009 (67% of total) — is located in South-East Europe: in the Balkans, Cyprus and Turkey. While Greece's early OFDI flows were directed to the secondary sector to reduce costs, the bulk of later flows was directed to the services sector, as new markets were opened. This shift signifies the rise of major corporate players. The Greek Balkan policy, which commenced through the European Union, and the upgrading of the Athens Stock Exchange have positively affected Greece's position as a key regional investor. The expectations for sustaining this leading role, however, have been weakened recently since, due to the Greek sovereign debt crisis, Greek multinational enterprises (MNEs) disinvested US$ 1.6 billion from their FDI abroad in 2010

Inward and Outward FDI Country Profiles, Second Edition

This second edition contains a series of 77 standardized country profiles dealing with the inward and outward foreign direct investment (FDI) performance of 40 economies. The profiles have been peer-reviewed by a global network of experts. The publication is intended to contribute to the analysis of trends in foreign direct investment and policy issues related to them. More specifically, the individual profiles discuss FDI trends and developments (country-level developments, the corporate players); effects of the recent global crises; and the policy scene. Each profile contains a standard set of tables, including on FDI stocks and flows, sectoral and geographical FDI distributions, the largest M&As and greenfield investments, the principal foreign affiliates (for inward FDI), and the principal multinational enterprises (for outward FDI). The standardized template used to produce the profiles allows cross-country comparisons. The volume is meant to be a reference tool for anyone interested in foreign direct investment

The interaction of international trade and Foreign Direct Investment (FDI) under decisive Institutional Reforms in Bulgaria

The paper examines the interaction between FDI and International Trade in Bulgaria on the basis of successful structural and institutional reforms. After 1989, major changes took place in the political and economical scene in Bulgaria. The country has managed to successfully reform institutions and as a result liberalisation policies became effective in the transition to a market economy. This is evident in the entrance of Bulgaria into the EU, the increased FDI inflows and the re-orientation of trade activities towards the EU member countries. Our empirical research suggests that FDI and international trade are both complements and substitutes in the case of Bulgaria.international trade; foreign direct investment; FDI; institutionalism; Bulgaria; institutional reforms; structural reforms; trade liberalisation; transition economies.

Evaluating the banking reforms in Serbia using survey results

Purpose – The main objective of this paper is to critically examine the effects of the ongoing reform process on the overall functioning of Serbia's banking system. It is essential that this reform process bears fruit by developing a sound, efficient and reliable banking system. Design/methodology/approach – The research results were obtained through exploratory field research. The interviews were aimed at capturing the attitudes of bank managers regarding the country's banking reform process and examining the context of the managers' feelings, thoughts, and actions. Findings – Based on questionnaire results collected from Serbia bank managers in 2004, the findings suggest that the reform process, although characterized as slow and sluggish due to a lack of customer's confidence in banks, has indeed improved the overall functioning of Serbia's banking sector. Research limitations/implications – This study's weakness is the fact that it was for the most part exploratory research. Conclusions can be drawn from the research, but not at the desired level of cause-and-effect. Practical implications – The Serbian banking reform process can offer lessons for both more and less advanced economies, as it exposes critical problems and mistakes that could be avoided and managed appropriately. Originality/value – This paper contributes to the research and literature on transition, as Serbia is an area of research in the transition literature, especially regarding the banking sector, which appears to be inadequate and limited.Banking, Banks, Economic reform, Serbia

Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece

A questionnaire survey covering MNCs that had invested in Greece during the period 1995-2003 is carried out in order to determine the barriers of inward FDI in Greece through a phase of increased expectations on foreign investment from hosting the 2004 Olympiad. The underlying assumption made is that the views of the local managers reflect the views of the mother company when deciding to invest. Although the findings represent the time that the investment took place, the influence of the conditions shaping the economic environment at the time the survey was carried out is also discussed. The findings indicate that the primary barriers to foreign investors are bureaucracy, taxation, corruption, and the labor market structure and support those of previous quantitative studies, leading to the conclusion that there is no progress made regarding these factors, in order to enhance FDI attractiveness. It becomes crucial for Greece to modernize and upgrade state mechanisms, through a more effective organization and administrative policies.Multinational corporations Foreign direct investment Greece