Revue d’études comparatives Est-Ouest

Review Article

The Role of Foreign Direct Investments in Southeastern Europe

Mico Apostolova1

a1 Assoc. Professor of Business Administration, University Goce Delcev, UGD, Macedonia;


From the beginning of the transition process, foreign direct investments (FDI) have been an essential pillar in southeastern European economies, a priority for moving society toward a developed market economy. The World Bank has conducted Enterprise Surveys on many countries using data from a representative sample of private-sector firms. These data are used herein from an accounting approach to examine, via a set of variables, the impact of foreign ownership. The findings are that: (i) foreign ownership has helped restructure firms toward a viable market economy; (ii) FDI has a positive effect on employment and exports; and (iii) FDI, in line with the literature, is expected to influence future capital accumulation and output. Overall, FDI has a positive impact and tends to affect the restructuring of domestic firms.

Key Words:

  • D01;
  • F21;
  • G31;
  • L33;
  • O11;
  • P31

Key Words:

  • foreign direct investment;
  • southeastern Europe
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