European Economic Integration and Swiss Foreign Direct Investment

Abstract

This paper provides econometric estimates of the determinants of Swiss outward FDI. Destination country statistics are pooled into a panel of FDI flows from Switzerland towards 12 OECD countries for 11 years (1982-1992). Results confirm expectations about the positive correlation between Swiss FDI and recipient countries' market size, and about the negative correlation with recipient countries' wages. However, Swiss FDI towards EU countries appears to be more sensitive to exchange rate variations.