Research Topics in Agricultural and Applied Economics

Volume: 1

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The aim of the eBook series of Research Topics in Agricultural & Applied Economics (RTAAE) is to publish high quality economic researches applied to both the agricultural and non-agricultural sectors ...
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Economic Determinants of Inward Foreign Direct Investment to Transition Countries. The Cases of Bulgaria and Romania

Pp. 160-167 (8)

Dimitrios Kyrkilis and Pantelis Pantelidis


The aim of this paper is to provide some assessment of the Foreign Direct Investment (FDI) prospects of the two transition countries acceded to the EU on January 1st, 2007, namely Bulgaria and Romania. In particular, it would attempt to assess the main FDI determinants for these countries after accession. Wage differentials between the two newly acceded countries and the EU-15 average in an environment of increasing trade integration with the EU-15 proves to be the primary reason of FDI entry to both countries. The privatization process and domestic demand play also important role. Some implications for the future prospects of FDI inflows to both countries are also drawn.


University of Macedonia, University of Piraeus