After The Eastward Expansion Of Fdi Flows And Determinants Of New Eu Member States Analysis

The thesis analyzed the determinant factors of Foreign Direct Investment (FDI) in new EU member states after accession. The new members are mainly consisted by ten Central and East European (CEE) Countries. After the revulsion of the socialism camp, FDI played an important role in the economic transition and development of CEE countries. After Joining in the EU, massive FDI flowed into the new members, and this is the second peak of FDI inflows. The first peak In the 1990s is focus on the manufacturing industry. After accession, the manufacturing industry was about to saturated, and the share of service FDI and R&D FDI were increasing. After completing the economic reform, the new members had changed from the low-end to the high-end in the industry chain. In this stage, the determinant factors are different. Human capital, R&D expenditure, infrastructure became the important ones. The main object of China's economic development is "transfer structure and promote development". Because new EU member states share similar national conditions in the transition stages. Studying for the case of FDI transformation in new EU member states has a significant reference to the change of China's role in the international specialization. And we can make conclusions and measures by analyzing the determinant factors.Chapter 2 reviews the classic theories of FDI and Multinational Corporation, then the paper about the determinant factors of CEE countries. Chapter 3 analyzes the inflow status of new EU members after accession by countries perspective, then analyzes by industries, by investing countries and by the ways of investment. Service sector became the major type of FDI. Chapter 4 researches the transition of FDI subsidiaries during the Financial Crisis. The evidence shows that the R&D subsidiaries and shared service centers were increasing. Chapter 5 is the empirical study about the determinants of new EU member's FDI after accession, finds that human capital and R&D expenditure have significance correlation with inflows. The thesis then uses the conditional logistic model to study the bilateral flows from old EU members to new members, and get the cause for inflows increasing after accession. In the final chapter, the thesis made the conclusion and obtains the enlightenment to China. China should raise the expenditure on research, education, and enlarge the proportion of FDI inflow on service industry.