  Within the last two decades, Foreign Direct Investment (FDI) has been
observed as one of the prime instruments in the process of restructuring the
European economies in transition. Many scholars argue that FDI is expected to
be a source of valuable technology transfer thus might certainly have positive
effects on host country development efforts. Nonetheless, there are no
clear-cut findings about the FDI genuine performances in supporting the
economic growth, productivity and export improvements within the European
transition countries. Using a large and comprehensive data set, we will
therefore analyze the linkage between FDI and above mentioned variables, so as
to recommend national policy appropriate measures aimed at averting negative
and strengthening the positive FDI spillovers.
