FOREIGN DIRECT-INVESTMENT AND THE RECONSTRUCTION OF THE ECONOMIES OF CENTRAL-EUROPE

The transformation process in the post-socialist countries in East Central Europe requires not only numerous institutional changes but also fundamental structural changes. Nearly all economic branches have to be modernized and their production profile has to be changed. The consequence is a high demand for capital to finance the necessary investments which cannot be raised in these countries and which have to be supplemented by foreign capital. In this process foreign direct investment will be of great importance.