Role of Foreign Direct Investment in Restructuring of Agribusiness in the CEE Countries Following the Transition
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The foreign direct investment (FDI) is a form of the capital flow having several century
traditions. In the privatization as well as modernization of economies following the economic
and political transition of the countries in the Central and Eastern Europe at the 1990s the role
of the foreign direct investment was significant. According to the research, besides to the
general positive effects of the FDI (production culture, market demand orientated product and
technology innovation, supplier nets of SMEs, diffused know-how, quality demands, etc.)
also led to economic dependency as well as market structure deformations (see oil industry,
sugar industry, retail chains). The point of view of sectors the foreign direct investment has
flowed insignificantly into the agriculture (raw material production), while it has been
significant into the food industry. The paper discusses the relations as well as causes of them.