ABSTRACT
One important phenomenon of the past century has been the rapid increase of direct investment flows across countries. For less developed countries that are catching up, the emphasis is naturally mostly on investment inflows from developed countries. This has been the case in the transformation countries also, where during the 1990s inward FDI became a significant source of economic development. Much less attention has been paid to outward FDI from these countries, mainly because of their almost non-existence until recently. During the past three-to-four years, however, companies of these countries show increasing investment activity abroad. This tendency can be well observed in Hungary.
