The East European Business Environment: Opportunities and Tripwires for Foreign Investors

Saul Estrin, Klaus E. Meyer

    Research output: Working paperResearch

    Abstract

    This paper explains the obstacles experienced by foreign investors in Central and Eastern Europe with the underlying structural problems of the 'economies in transition'. The current economic transition of the region offers unique opportunities arising from virgin markets and low labor costs. However, the industrial restructuring process creates many obstacles for foreign investors. The are becoming involved in a radical change of industries, firms and individual behavior. The privatization-process creates opportunities and obstacles for acquisition entry. The institutional framework is developing towards Western models, but is still incomplete. An enterprises survey shows how these opportunities and obstacles affect foreign investments.
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherCEES, Copenhagen Business School
    Number of pages24
    Publication statusPublished - Feb 1997
    SeriesWorking Paper / Center for East European Studies. Copenhagen Business School
    Number2

    Keywords

    • Eastern Europe
    • Business environment
    • Microeconomic transition
    • Industrial restructuring
    • Direct foreign investment
    • Investment motivations

    Cite this

    Estrin, S., & Meyer, K. E. (1997). The East European Business Environment: Opportunities and Tripwires for Foreign Investors. CEES, Copenhagen Business School. Working Paper / Center for East European Studies. Copenhagen Business School, No. 2