The aim of this paper is to research the determinants of FDI inflows in the SEE region with a special emphasis on corporate tax rates. The panel data analysis (GMM methodology) was conducted on six countries in the period 2000-2011 in two versions: as gravity model based on bilateral FDI inflows and on the total FDI inflows (and inward stock). The results pointed the most important determinants for attracting FDI in SEE countries are market size (population), growth rates, GDP per capita, and wages. Institutional variables and corporate tax rates were not significant in the analysis of flows, but they become significant in the analysis of FDI inward stock.

Integration within the EU single market increases the interconnection and interdependence of the EU economies. Global value chain (GVC) participation has become one of the most widely used indicators to measure the dispersion of the production process among different countries. The EU member states rate differently in the GVC participation index. The highest participation is in Luxembourg and Slovakia and the lowest is in Croatia. The aim of this paper is to identify the most important variables that influence the GVC participation index in the EU member states (EU-15 and EU new member states). The research employs dynamic panel data (GMM) methodology. The obtained results are very similar for the EU-15 and EU-NMS indicating that the most important drivers of GVC participation are: GDP growth, lag GVC participation, FDI, development of financial sector, share of services in GDP and share of high-tech products in export, and level of wages. However, the indicators and strength of the influence of some of these variables differ between the two groups of countries.

) and its importance in attracting FDI inflows. Several regression models are created to determine the significance of chosen location determinants. The models include institutional variables about the transition progress, government effectiveness, rule of law, corruption, but also variables about the economic characteristics of the SEE region such as GDP per capita, growth rate, inflation and wages. The results of the panel data analysis indicated the importance of economic determinants (GDP p.c. and inflation) to FDI inflows, while among institutional factors, only corruption, large scale privatisation, the development of trade and forex systems, and overall infrastructure reform have a significant impact on FDI inflows. Property rights freedom and small scale privatisation are not significant variables. When we reduce multicollinearity, we conclude that GDP p.c., inflation, the trade and forex systems, corruption and overall infrastructure reform remain significant variables in explaining the economic and institutional determinants of FDI inflows.

Absorption of the financial resources allocated from the EU funds is a very important aspect of the European integration process, while there is a lack of empirical researches on the determinants of a country/region's abilities to efficiently absorb the money. This study investigates the influence of the chosen territorial economic preconditions important for successful absorption of EU funds over the last two Cohesion Policy programming periods, on the sample of convergence and developed NUTS 2 regions of the EU. The analysis is based on 86 regions that have GDP per capita less than 75% of the EU average (convergence regions) and 186 regions that have GDP per capita above 75% of the EU average (developed regions). By using panel data analysis, it is confirmed that the absorption of EU funds is conditionally affected by regional economic characteristics. The results of the study contribute to empirical researches on the determinants of regional absorption capacity in the EU and can be important in discussions surrounding Cohesion Policy planning and programming.

This research provides indepth analysis of the causes and outcomes of internal devaluation policy in EU. It is conducted using statistical and econometric tools on a sample of three groups of EU member states: EU new member states, PIIGS, and the rest of the EU (EU-core). The analysis points to the key drivers of economic growth in the whole of the EU as being productivity and investment (and consumption in EU new member states and EU core members). Unit labour costs are relevant for GDP growth in PIIGS but with a positive sign, while for the rest of the EU it is not a significant variable. The policy of internal devaluation is unsuitable for application in any EU member states, due to individual specificities. The solution is stronger EU governance that takes the heterogeneity of EU member states into consideration in the process of creating policies and finding solutions.

Summary Motivation The COVID‐19 pandemic has substantially altered the context for cross‐border business. This is reflected in trade flows but also affects the conditions for conducting dispersed production functions across countries. This “new normal” period presents the need to examine the main problems/challenges in international trade and business. Purpose The article aims to establish the scope, aspects and implications of the COVID‐19 pandemic on international trade and on international production by reviewing recent articles which deal with international trade and global value chain (GVC) issues, changes that were already taking place and the challenges that began in 2020. Methods and approach The findings of recent articles on trade flows and changes in GVCs (mainly the period 2019–2021) are described in theoretical terms, compared and systematically reviewed. Special focus is given to the impact of the pandemic on GVCs, re‐nationalization and GVCs and the impact of the pandemic on GVC governance, and GVCs in the production of vaccines for the COVID‐19 virus. Findings Trade recorded a drop in 2020, accompanied with the introduction of protective trade policy measures. Reduced GVC activities had a negative impact on welfare and the “re‐nationalization” of GVC‐related activities is not a real solution. For the development of GVCs it is important to find a trade‐off between efficiency and resilience, starting with re‐organization (re‐engineering) of GVCs, and probably focusing on regional frameworks. Liberal trade policies are essential to ensure the involvement of GVCs in producing the COVID‐19 vaccines since the various inputs are produced in different countries. Policy implications The possible directions for the future development of GVCs are elaborated: re‐shoring, resilience in supply chains, adjustments in governance, diversification and development of risk‐management strategies. The process of internationalization is not in question, but presents challenges which create the need for adjustments in its future development. Current problems with vaccine production arise in part from imposed trade barriers and rising nationalism. There is a need for greater cross‐country co‐operation to avoid placing national short‐term interests before long‐term and broader objectives.

This paper aims to assess the role of national and regional agencies in attracting foreign direct investment (FDI)

COVID-19 pandemic has accelerated the transition of EU economies toward a higher level of digital society development. The European Commission set digitalization as one of its most important priorities for 2019-2024. As both the Cohesion Policy and the Next Generation EU aim to support the realization of EC priorities, in this paper we focus on examining and evaluating the allocations from European Structural and Investment Funds (ESIFs) to the digital society performance. The research results subverted expectations, revealing that ESIFs spending on ICT does not contribute to the digital society development. This highlights the need for more investment into the ICT to reduce the gap in performances of the EU member states.