The Prospects of Foreign Direct Investment in the Region of Central and Eastern Europe

Purpose - This study tries to reveal the main periods of Foreign Direct Investment (FDI) flows, since the political change of Hungary till nowadays. Methodology/approach - Trying to analyze the trends of FDI flows in the world and in Hungary with using databases, statistics and other research studies. Findings - There is a declining trend of Hungarian capital import which is influenced by the failure of the nation's capital attracting ability. Research limitations/implications - The present study provides a starting-point for further research in the trends of FDI flows. Practical implications - Hungary needed foreign capital to solve the problems of the financial budget in the year of 1990s. Hungary lost its former prominent position in attracting FDI considering the CEE region. Originality/value - Considering the effect of FDI flow positive, but must draw attention to the necessity of internal resources and the development of domestic enterprises.