Trade and investment in regional trade agreements : The case of the Central European Free Trade Agreement (CEFTA) 2006 Over the past twenty years the economies of Central and South East Europe have undergone fundamental changes – the opening of new markets major policy reforms deeper intra and inter regional economic integration and institutional improvements – which have significantly altered the landscape of economic activity in the region. This paper explores the experience in South East Europe and investigates how this growth has impacted the geographical location of economic activity in the region as well as foreign direct investment flows.