Saul Estrin

  • Current position:
    Professor of Managerial Economics and Strategy, Department of Management, LSE, London, UK
  • Research interest:
    Privatization, transition economics, foreign direct investment, entrepreneurship
  • Website:
  • Affiliations:
    LSE, UK, and IZA, Germany
  • Past positions:
    London Business School (1991–2006); London School of Economics (1984–1991); University of Southampton (1977–1984)
  • Qualifications:
  • Personal statement about IZA World of Labor:
    I have worked for a number of years on issues concerning the transition economies of Central and Eastern Europe. I am pleased to have this opportunity, provided by the IZA World of Labor, to make my work available to an unrivalled audience of policymakers and analysts within Europe and beyond
  • Selected publications:
    • “Institutional determinants of new firm entry in Russia.” Review of Economics and Statistics 95:5 (2013): 1740−1749 (with R. Bruno and M. Bytchkova).
    • “Human capital in social and commercial entrepreneurship.” Journal of Business Venturing 31:4 (2016): 449−467 (with T. Mickiewicz and U. Stephan).
    • “The effects of privatization and ownership in transition economies.” Journal of Economic Literature 47:3 (2009): 699–728 (with E. Kocenda, J. Hanousek, and J. Svejnar).
    • “Institutions and entrepreneurship development in Russia: A comparative perspective.” Journal of Business Venturing 23:6 (2008): 656–672 (with R. Aidis and T. Mickiewicz).
    • “Institutions and female entrepreneurship.” Small Business Economics 37 (2011): 397–415 (with T. Mickiewicz).
  • Articles

Foreign direct investment and employment in transition economies

Has FDI into transition countries had the expected economic effects?

January 2017

10.15185/izawol.330 330

by Saul Estrin Estrin, S

Foreign direct investment (FDI) has been argued to improve company performance and stimulate growth and employment. Transition economies of Central and Eastern Europe (CEE) faced a desperate need to join the global economy, to improve their competitiveness and to create jobs through FDI. So, did the FDI come, and did it deliver what was expected? FDI levels were high for CEE, and for some resource-rich transition countries (e.g. Russia and some of Central Asia), but primarily delivered significant benefits (e.g. employment) for the former. FDI arrived much later to other transition countries (e.g. the former Soviet republics and the Balkans) and had much less impact.