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From Communists to Foreign Capitalists:
The Social Foundations of Foreign Direct Investment in Postsocialist Europe
Nina Bandelj

Book Description | Reviews
Chapter 1 [HTML] or [PDF format]


List of Tables ix
List of Figures xi
Acknowledgments xiii
Prologue xvii

CHAPTER 1: Social Foundations of the Economy 1
The Argument 2
A Social-Constructivist Perspective on Economic Organization
and Action 8
The Empirical Case: Foreign Direct Investment in
Postsocialist Europe 16

CHAPTER 2: From Socialism to Postsocialism 29
Socialism 30
Challenges of the Transformation: Shock Therapy versus
Gradualism 43
The Context of Transformation 46
Conclusion 64

CHAPTER 3: Institutionalization of FDI in Postsocialism 65
FDI as Instituted Process 66
Legitimization of FDI Practice 70
FDI Trends since 1989 88
Explaining FDI Inflows across Countries
over Time 91
How Postsocialist States Create Markets 99
Conclusion 101

CHAPTER 4: Cross-Country Patterns in FDI Flows 103
From Country Characteristics to Relations between Countries 104
Social Relations as Determinants of FDI Flows 111
Embeddedness and Globalization 126
Conclusion 130

CHAPTER 5: Embeddedness of Organizational FDI Attempts 131
Invested Transactions: The Intricacies of FDI Attempts 131
What Determines FDI Transactions? 143
Network Embeddedness 145
Cultural Embeddedness 149
Political Embeddedness 155
Macro-Institutional Embeddedness 159
Embeddedness: Structures-Power-Culture Configurations 162
Conclusion 166

CHAPTER 6: Uncertainty and the Practice of FDI Transactions 168
Rethinking Instrumental Rational Action 169
Uncertainty 174
Practical Action Model 177
Substantive Varieties of Rationality 179
Procedural Varieties of Action 181
Logic of Decision-Making Practice: Routines, Emotions,
Creativity 189
Conclusion 194

CHAPTER 7: Embedded Economies 196
Creation of Markets: From One Kind of Embeddedness
to Another 196
Operation of Markets: Structures-Power-Culture Configurations 200
Varieties of Postsocialist Capitalism 206
Conclusion 218

Epilogue 221
Appendix on Method and Data Sources 223
Notes 243
References 255
Index 291

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File created: 4/21/2017

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