New institutional economics and FDI location in Central and Eastern Europe

Robert Grosse, Len J. Trevino

Research output: Contribution to journalReview articlepeer-review

116 Scopus citations


This paper links the new institutional economics with organizational decision making on foreign direct investment (FDI). We examine the relationship between FDI inflows in Central and Eastern Europe (CEE) and institution building - particularly governments' efforts to create a more favorable FDI environment by reducing uncertainty and, concomitantly, costs associated with long-term capital investments. By combining institutional constructs with traditional factors that contribute to FDI decision-making and applying them to economies in transition, we extend the new institutional economics.

Original languageEnglish (US)
Pages (from-to)123-145
Number of pages23
JournalManagement International Review
Issue number2
StatePublished - 2005
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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