ABSTRACT
The dynamics of outward foreign direct investment (FDI) were determined by changes and developments in the domestic macroeconomic situation and competitiveness of domestic firms, the process of privatization and changes in laws concerning outward investment, the integration process of Slovenia and other transition economies into the EU and trends in world trade. This chapter presents general trends and the pattern of Slovenian outward FDI in the 1990s. It discusses the evolution of the legal framework and examines the development of outward FDI from the early years of transition. In 1993, the Slovenian Parliament passed a new Foreign Trade Law, which was more liberal. After initiating negotiations with the EU to sign the Europe Agreement, the process of harmonization of financial and foreign trade legislation got underway. Liberalization was therefore initially very Europe-Agreement-driven and not so much the result of specific industrial policy.
