From Communists to Foreign Capitalists (ebook)

Argumento de From Communists to Foreign Capitalists (ebook)

"While the book is a must read for scholars of postsocialism, it will also be of interest to economic sociologists and scholars and students of globalization, capital mobility and foreign investment, economic change, and economic development."--Christy M. Glass, Labour

"Nina Bandelj has produced an outstanding piece of work on the postsocialist transformation in Eastern and Central Europe. . . . The theoretical arguments are sophisticated and nuanced, and the empirical research behind them is outstanding. I commend the book to anyone interested in the structure of markets, the processes underlying foreign direct investment, and the processes of globalization more generally. It will be essential reading not only to those interested in postsocialist transitions but also to economic sociologists in general and to anyone interested in the social construction of markets."--Doug Guthrie, Administrative Science Quarterly

"Capital is the fuel of the modern economy. After the fall of the Iron Curtain, the former socialist countries had to import this fuel from capital-rich Western countries. Which countries could attract the most foreign direct investment and why? In her outstanding study, Nina Bandelj shows that the diffusion of foreign direct investment is a socially embedded process in which decisions in an uncertain environment are shaped by social, cultural, and political forces. Arguing clearly and gracefully, she skillfully applies the toolkit of economic sociology to one of the most pressing questions of the global economy."--Jens Beckert, Max Planck Institute for the Study of Societies

"Pundits tell us that globalization has now made the world flat, and rendered the state obsolete. Nina Bandelj shows that both of these truisms are false, explaining how social networks, institutions, politics, and culture deeply affect the flow of foreign direct investment into eleven postsocialist countries. Her thoughtful analysis will be of interest to anyone who wants to understand globalization, economic development, and Central and Eastern Europe since 1989."--Bruce G. Carruthers, Northwestern University

"In this compelling account of the origins of foreign direct investment in postsocialist Eastern Europe, Nina Bandelj explores a critically important--but typically overlooked--component of economic transition: the centrality of social relations to what may appear to be a purely economic exchange. Anyone interested in transition, Eastern Europe, or economic sociology more generally will want to add this to their must-read list."--Lisa A. Keister, Duke University

"This book is a major contribution to economic sociology and the study of the postcommunist transformation. It makes creative and fundamental theoretical points and has empirical punch. It will stand out in the literature on foreign direct investment with its originality."--Ákos Róna-Tas, University of California, San Diego

"Nina Bandelj's first book is powerful and persuasive. Its strength comes from the author's personal involvement with the subject matter. . . . The book contributes significantly to the literature on postsocialist transformation and builds upon well-known themes that have been developed since the 1990s to analyze the deep changes of the current decade. . . . Definitely, this is a must read for both graduate students who are approaching the study of economic geography, economic sociology, globalization, and Eastern European studies and established scholars who are working on postsocialist transformation."--Christian Sellar, Economic Geography0List 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