relocation of business services into central and eastern europe (evidence from trade and location statistics)

Relocation of business service offshoring-related activities measured by foreign direct investments and exports in services have grown rapidly after the Millennium in the new EU member states of Central and Eastern Europe (CEE). Besides Foreign Direct Investment (FDI), trade statistics support the assumption that an expanding export in business and in ICT services has been associated with relocation of shared services centres created by FDI in the six new member states (NMS). The service export data collected between 1996/2002 and 2012 gives a good proxy to identify those segments of service trade, which are considered to be offshorable. The paper examines the additional location factors selecting Central and Eastern European locations and summarises the effect of crisis on this industry. It concludes that the sector has demonstrated market resilience in the NMS and continued to expand rapidly.