Closing the FDI gap in CEE countries. The example of Bulgaria and Romania

Popovici Oana, Cristina
The aim of this paper is to assess the period needed for closing foreign direct investments (FDI) stocks gaps between Bulgaria, Romania against the rest of the new European Union (EU) countries. In this respect, we analyze the evolution of FDI in the two countries in the last two decades and during the economic crisis compared to the new EU member states in Central and Eastern Europe (CEE). The gap in FDI stocks between Bulgaria, Romania and the other states is still important, although the
more » ... t, although the evolution of FDI inflows in the last years points to a restoration in attractiveness. For each country, we build three scenarios based on the FDI flows' annual growth rate in which we estimate the period needed for closing the gap in FDI stocks with Poland, the best performing economy in CEE. In order to reach the volume of FDI stocks in Poland, both countries need more than three years, in the most optimistic scenario.