Abstract:

Attracting FDI causes multiple effects on the economy of a host country and these effects are often related to labor productivity growth, technological progress and economic growth in the long term, regardless of the country’s level of development. Through this article there is provided a review of the structural effects of FDI on host countries, classifying them into direct, indirect, horizontal and vertical effects. In this research, there are taken into account the results of empirical studies on the impact of FDI on capital flows, on productivity, on competitiveness between economic actors and on other economic variables that are strong related to economic growth especially in developing countries in Central and Eastern Europe.