Capital flows in the form of foreign direct investment (FDI) are becoming one of the major mechanisms of interaction between Western and East-Central Europe. The major objective in this paper is to assess the extent and distribution of FDI between Czechoslovakia (before its breakup), Hungary, and Poland at the beginning of 1992. A detailed examination of the new investment patterns is followed by an analysis of the capital flows by geographical origin of investors and sector of the economy. In addition, the political and economic reasons for emerging regional differences in terms of FDI are discussed. The conclusions are focused on possible scenarios for future FDI in the region and its importance in the European integration process. It is clear that the benefits of direct Western investment in the former Eastern Europe stretch well beyond narrowly defined economic interests.

The resurgence of continental trading blocs throughout the 1980s will influence the nature and evolution of the world economy in the 1990s and beyond. In this paper, we argue that classical economic analysis of trading blocs is inconclusive, and regionalism cannot be understood in economic terms alone. We focus on an examination of the relationship that exists between trading bloc formation and more fundamental economic and social trends taking place in the industrialized economies since the Second World War. Our contention is that regionalism represents one of the most fundamental restructuring processes affecting the world economy since the principles of international trade were established at the Bretton Woods Conference. Regionalism and multilateralism represent competing, but not necessarily mutually exclusive, principles underpinning economic integration and trade in the global economy. The end products of this competition are the two potentially complementary, spatial processes of trade bloc formation and globalization. Consequently, not only globalization but also regionalism are at the center of the economic transformation of contemporary industrial society and changing international relations.

The focus of this paper is the intra-urban location of producer service firms. The literature review reveals a selective deconcentration ofproducer service activity over the years. Those moving out, among them exporters of producer services, are less likely to requiretheface-to-face contacts a CBD location permits. The content of Edmonton's producer service sector is described in terms of the number, type, revenues, and markets of the firms. A stage development model describing and accounting for the intra-urban locational behaviour of producer service firms is then proposed. It is argued that a firm's location is dependent on the stage it has reached in the development cycle and whether it exports its service or not. On this basis a three-phased stage development model is developed. It incorporates the accommodation requirements of firms in the various phases of the development cycle relative to the services they offer and their organizational status. The model is tested by mapping the addresses of 1523 producer service firms located in Edmonton andgeneralizing these into composite areas to which the numbers and types of service can be ascribed. Additionally a sample (172) of these firms was surveyed to establish the most important locational determinants relative to a firm's export orientation. In general, an empirical evaluation enabled a tentative acceptance ofthe modelas a good approximation of producer service firms' locational behaviour. However, a more comprehensive data base is required for a full evaluation and refinement of the stage development model proposed here. Nonexporting firms tend to locate in the CBD and inner city areas, while exporting firms seek suburban office parks wherein access and space are available. The policy implications of the research are addressed and suggestions for refinement of the model conclude the statement, Cet article traite de la localisation intra-urbaine des soci&& productrices de services. l a bibliographie fait apparaitre une dkoncentration s6lective des activit6s de service au cows des anne'es. Celles qui quittent le centre ville, principalement les producteurs de services a I'exportation, semblement avoir moins besoin des contacts face d face que permet une localisation en plein centre ville. Un panorama du secteur de la production de services A Edmonton est fourni, en termes de nombre, type, chiffre daffaires et march6 des soci6t6s. Ensuite, on propose un modPle qui d6crit et tient compte du comportement de localisation intra-urbaine des soci6t6s de service. Un des arguments proposb fait le lien entre la localisation, Petape dans la vie de la soci6t6 et la presence ou non d'activit6s exportatrices. Sur cette base, un modele de cycle de vie en trois phases est d6velopp6. I1 tient compte des contraintes &emplacement, des diffdrentes phases de leur Wveloppement en fonction des services proposes et de leur statut organisationnel. Le modde est v6rifi6 en cartographiant les adresses de 1523 soci6t6s de service localis6es B Edmonton et en les zones composites auxquell...

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In this paper the authors examine the subcontracting behaviour of producer service firms in a peripheral metropolitan city. The objective of this empirical investigation is to uncover spatial and organizational linkages of producer services that have developed in response to changes in the industrial organization of a modern capitalist production system. The focus is on three types of linkages, namely subcontracting, inputs of producer services, and inputs of goods and final services. The data collected through a survey of producer services in Edmonton reveal that subcontracting rather than internalization is the main mode of production. Therefore the producer service sector can play an important role as a supplier of indigenous higher-order services and innovations, inducing better productivity rates in other industrial sectors including resource-oriented local producers.