Foreign direct investments – catalyst for economic growth in central and eastern Europe

Abstract

Nobody can dispute the principle according to which, given an increased liberalization process, the capital will shift from the places in which it is excessive to places in which it is needed, in other words places in which it is granted a higher rate of return. Reducing the obstacles that lie in front of the investment flows has, as expectedgenerated an increase in the foreign investments’ shifting speed. A contiguous problem that arises in this context is about their impact and effects on the investing companies, as well as on the host countries. In a broader view, it can be considered that all these effects have a positive impact on the global activity, a growing number of firms finding themselves in the situation of carrying out operations in more than one national jurisdiction. From all of them, the biggest transnational companies (approximately 300) control more than 70% of the total foreign direct investments and, approximately, a quarter of the existing assets from all over the world.