The relation between foreign direct investments and small and medium enterprises: the case of Eastern Europe
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Abstract
This study examines the impact of Foreign Direct Investment (FDI) on Small and Medium Enterprises (SMEs) in Eastern Europe. Based on the literature, it can be argued that SMEs development leads to increased economic activity; from this perspective, FDI inflow could play a significant role in fostering growth; however, there are also conflicting findings about the impact of FDI on SMEs. This research takes these conflicting views into account and sets out to find clearer understanding of the relationship between FDI and SMEs in the region. SMEs are local economic drivers, and focusing on their improvement has led to specific research on the factors influencing SME activity. Therefore, based on the results of this study, placing special attention on our country makes this research even more important.
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References
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