Foreign Direct Investment in Central, Eastern and South Eastern Europe: an 'eclectic' approach to Greek investments

Abstract

During the last decade Greece has emerged as one of the largest investors in the Central and Eastern and South Eastern European Countries (CESEEC). This is the first paper to empirically evaluate the determinants of this investment and of the entry mode decisions of Greek firms participating in the Athens Stock Exchange. The main aim of the paper is to investigate foreign direct investment determinants using Dunning's eclectic paradigm. Our results offer strong support to the eclectic framework and suggest that it is the interrelation of ownership and institutional locational advantages that can explain foreign investment activity.