Friend or Foe? On the role of institutional reforms in the investment development path of Central and East European economies

Marian Gorynia , Jan Nowak , Piotr Trąpczyński , Radosław Wolniak

Abstract

Many existing studies on emerging markets and firms have concentrated on the separate effects of institutional reforms and quality of the institutional infrastructure for attracting inward foreign direct investment (FDI) and fostering outward FDI. We argue that both these perspectives should be considered in an interplay, as there are links between inward and outward FDI in a country's economic development, which is captured by the investment development path (IDP) concept. Moreover, while predominant attention has been paid to emerging markets, little has so far been done to evaluate the sustainability of the institutional development, including later post-transition stages. We extend the IDP with insights from the institutional theory and conduct a comparative analysis of the effects of institutional reforms on IDP paths of ten Central and Eastern European (CEE) post-communist European Union (EU)-members. We find that while most of the studied post-transition economies follow a quadratic relationship between the net outward investment (NOI) position and each country's economic development, the role of institutional reforms is not in all cases accelerating the movement through the stages of the IDP. We attempt to explain the ambiguous role of institutions in an ensuing detailed discussion of the investigated countries.
Author Marian Gorynia (WGM / KKM)
Marian Gorynia,,
- Department of International Competitiveness
, Jan Nowak
Jan Nowak,,
-
, Piotr Trąpczyński (WGM / KKM)
Piotr Trąpczyński,,
- Department of International Competitiveness
, Radosław Wolniak - University of Warsaw (UW)
Radosław Wolniak,,
-
Journal seriesInternational Business Review, ISSN 0969-5931, e-ISSN 1873-6149, (N/A 100 pkt)
Issue year2019
Vol28
No3
Pages575-587
Publication size in sheets0.6
Keywords in PolishIDP, gospodarki po transformacji, reformy instytucjonalne, Europa Środkowa i Wschodnia
Keywords in EnglishInvestment development path, Net outward investment position, Post-transition economies, Institutional reforms, Central and Eastern Europe
ASJC Classification1403 Business and International Management; 1406 Marketing; 2003 Finance
DOIDOI:10.1016/j.ibusrev.2018.12.003
URL https://www.sciencedirect.com/science/article/abs/pii/S0969593117301129
Languageen angielski
Score (nominal)100
Score sourcejournalList
ScoreMinisterial score = 100.0, 08-04-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 1.838; WoS Impact Factor: 2017 = 2.754 (2) - 2017=3.544 (5)
Citation count*4 (2020-09-13)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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