Analysis of the external growth factors in the selected countries of Southeast Europe

When deciding on the choice of the country they are planning to invest in, foreign investors should perform a detailed analysis of factors external environment in order to assess the viability of the investment. In the initial stages of transition to the market of Southeast Europe, growth strategies were mainly carried through the privatization of state-owned enterprises which represent a form of cross-border M&A activity, because privatization usually represents the entry of foreign investment into the country's market by purchasing the majority of the state capital. The aim of the paper is to analyze the factors that have contributed to attracting capital in selected countries of Southeast Europe. Countries were grouped according to institutional determinants through multivariate cluster analysis. Such an analysis should show whether the institutional determinants influence the movement of capital flows between selected countries in Southeast Europe.