Economic Relations in South Eastern Europe: The Intra-Regional FDI Point of View

Abstract

The paper is presenting the results of case study survey within the already settled Greek business in neighbour countries. Totally the survey covers 28 big Greek firms. The focus of the study is put on the role of these firms on the development of the bilateral relations. The case study focused on advantages and disadvantages of doing business in neighbour countries with special attention on: competition with other EU firms; the role of the financial issues; different aspects of legislation, national industrial policy, attitude to the trade unions, etc. Very important is the obtained information about how the big Greek firms found the tax system and the legislation – favourable or not, compared with the one in Greece, as well as the differences they see between Bulgaria, Macedonia and Albania as well as do they find favourable the changes in the tax system and the legislation, which occur in the last years, and what direction should the changes take from their point of view. It was outlined and analysed the main advantages and obstacles for the business in neighbour countries the Greek firms face. The survey found that the differences in the general establishment and business conditions are main factor for foreign investments attracting or not attracting. It is studied also the roll of the cross-border relations for the economic development between Greece and its neighbour countries. Outlined is also the role of the EU programmes for the development of these relations. Finally some conclusions and policy implications are done.