【正文】 to acquire large portion of the CEE automobile sectors by entering into a joint venture with Automobile Craiova of Romania to form Rodae Automobile and also obtained a % holding in Avia8. It furthermore acquired a controlling stake in FSO9 and FS Lublin10 and established Daewoo Motor Poland. By 1996, DaewooFSO Motor Co was established as a joint venture between Daewoo Corp (%), Daewoo Heavy Industries (%) and the Polish government (15%) (El Kahal 2021). This project allowed Daewoo to catch up its rivals and became the second largest car producer in Poland overnight. The legendary Polish deal was struck in less than 15 minutes (El Kahal 2021, p. 276), in which Daewoo promised to maintain employment until 1999 and to continue producing the oldfashioned ‘Polonez’ at FSO (Lautier 2021, p. 256). This deal caused the factory line to be very labourintensive due to the large number of employees and Daewoo had to assemble its other car models like Nubira, Leganza and D’Arts in Poland in order to absorb the labour surplus. In fact, Daewoo factories in Eastern Europe had not reported any profits since they were set up. Impact of Daewoo’s investment on Poland Daewoo acquired several inefficient ponentmanufacturing units from the takeover of FSO. These were brought together as an independent business 。捷克商業(yè)文化和勞動力還在適應(yīng)新的管理風(fēng)格和松下注入企業(yè)文化的持續(xù)過程 Asian FDI in Central and Eastern Europe and its impact on the host countries Asia Europe Journal (2021) 1: 349–369 DOI: impact on the local entrepreneurs, suppliers and petitors and most importantly, it upgrades the parative advantage of the host countries. They provide much of the petence and initiatives for economic growth. Most Asian firms entered these emerging markets only in the late niies. As pared to the surge of western investment in the region, Asian investment has not reached anywhere near similar levels. Nevertheless they raise some important questions. Research objective and focus In this paper, Asian investment in the region will be examined using case studies and explicated from two perspectives that of the FDI host countries and that of the Asian investors. The paper addresses a number of key issues. The first issue highlights how the experiences of Asian investors in the major recipient countries are influenced by the regulations and the policies implemented by the host governments during the post transition years. FDI in transition economies appears to be a positive experience for the foreign 10 investors, the host countries and the local firms in the host countries. However, drawing from the experiences of the five largest Asian investors, we observe that the cost and the benefits of the Asian FDI in the host economies vary according to the parative advantages of the investors and the policies implemented by the host governments (Dunning 2021, p. 70). Research methodology The case study approach will be used to analyse the experience of FDI and its impact on the CEE economies, which is appropriate because of the ongoing changes associated with the transition process. Firms investing at different points in time and in different sectors will have different experiences in these transitional economies and thus may have different impacts on these economies. The case studies of five Asian firms in CEE allow an indepth analysis of the motivations and behaviour of Asian investors in the CEE and of their direct and indirect impact on these economies. As the case studies methodology inevitably entails a certain extent of constraint when examining separate cases generalisations are kept to the minimum. With this constraint in mind this paper will focus on Asian investment in the three main host countries in CEE which have attracted over twothirds of the total FDI in the former Soviet bloc. With the sample of three host countries, Poland, Czech Republic and Hungary and two home countries, Japan and Korea, we are also able to identify the differences between the Korean and Japanese investors in their motivations and behaviour in CEE. The first consideration for the selection of sectors for our study is the ability to conduct intrasectoral parisons within and across countries and the second aim is to identify sectors where these Eastern European countries seem to have parative advantages. With the eight cases undertaken, as seen in Table 1, our case selection identifies at least one case from each home country in each host country. 350 Lim Jia Woon Table 1 shows two main sector groupings which have substantial multinational activities on a global level. We are able to make intrasectoral parison across at least two host countries. Finally, all the panies focused are either transnational or multinational enterprises. Case studies of the Asian FDI in CEE Concepts of the impact of FDI Before analysing how the characteristics and policies of the host countries will influence the motives and experiences of Asian investors in CEE and the impact of such investment on the economies, it will be wiser to focus on the concepts of the positive impacts of FDI from the work of Phisalaphong (2021) and Dunning (1993b). The benefits are explained in two aspects: The spill over of technology and other positive externalities and indirect employment effect. The spillover of technology occurs in two ways, the vertical and horizontal spillover. According to Phisalaphong (2021), horizontal spill over is an improvement of the productivity 11 of local firms, as the entry of foreign petitors in the local market serves as a showcase to them and as an education provider for local personnel. Vertical spillovers occur when foreign firms have an impact on the local suppliers and consumers. Vertical spillover is also identified by Dunning (1993b) known as the backward linkages which are