FDI: Source of financing or source of trade for CEE

This is the authors' abstract. We don't add key points for this paper.

The paper is devoted to the study of relationship between foreign direct investments and trade of transition economies of Central and East European region. The increasing internationalization and globalization of production make the question of the relationship between foreign direct investments and trade more important, especially with the upsurge of transition economies' foreign direct investments. Foreign direct investments are usually analyzed separately, as a form of investment, financial flows. There is enormous literature researching the inflows of foreign direct investments into countries of Central and East European region and recent literature about foreign direct investment outflows from these countries. With the increase of region's foreign direct investments, the question of their impact and relation with trade stands out and the paper will focus on the relationship between investment and trade flows of this group of countries revealing their connection and intertwining and the necessity of different international trade analysis of these countries.