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Within the last two decades, Foreign Direct Investment (FDI) has beenobserved as one of the prime instruments in the process of restructuring theEuropean economies in transition. Many scholars argue that FDI is expected tobe a source of valuable technology transfer thus might certainly have positiveeffects on host country development efforts. Nonetheless, there are noclear-cut findings about the FDI genuine performances in supporting theeconomic growth, productivity and export improvements within the Europeantransition countries. Using a large and comprehensive data set, we willtherefore analyze the linkage between FDI and above mentioned variables, so asto recommend national policy appropriate measures aimed at averting negativeand strengthening the positive FDI spillovers.

Estimating the FDI Impact on Economic Growth and Export Performances of the European Economies in Transition