This book examines how foreign direct investment (FDI) inflows to Central and Eastern Europe
have changed after the Great Recession. It argues that beyond their cyclical effects the
economic crisis and the changing competitiveness of Central and Eastern European countries have
had structural impacts on FDI in the region. FDI has traditionally been viewed as the key
driver of national development but the apparent structural shift means that focusing on cheap
labour as a competitive advantage is no longer a viable strategy for the countries in the
region. The authors argue that these countries need to move beyond the narrative of upgrading
(attracting FDI inflows with increasingly higher value added) and focus on ensuring greater
value capture instead. A potential way for doing this is by developing the conditions in which
innovative national companies can emerge thrive and eventually develop into lead firms of
global value chains. The book provides readers with a highly informative account of the reasons
why this shift is necessary as well as diverse perspectives and extensive discussions on the
dynamics and structural impacts of FDI in post-crisis Central and Eastern Europe.
