Inter-country FDI distribution patterns in the EU

The aim of this paper is to examine the impact of economic integration on intra EU FDI. More specifically, a model is employed regressing country relative intensities of inward FDI originated from within the EU against a set of variables expected to affect the FDI inter-country distribution. Trade appears to be a significant and positive factor mobilizing intra regional inward FDI in almost all cases. The next important determinants of intra EU FDI are supply cost variables. Capital productivity and development level considerations seem to have played a minor role in determining patterns of intra-EU FDI.peer-reviewe

Agriculture and Regional Development in Greece

This paper attempts to explore the effects of post-war war economic development model followed in Greece. The model is characterized by both the neglect of Greek agriculture and the emphasis on industrialization, mainly around the two major cities, Athens and Thessaloniki. The model has to develop a strong industrial sector but to inflate services and it devastated agriculture. At the regional level the uneven growth path that has been adopted perpetuated between urban and tourist areas on the one hand and the rural regions on the other

European Monetary Union and foreign direct investment inflows

The aim of this paper is to construct and test a model explaining the inward Foreign Direct Investment (FDI) position of various members of European Monetary Union (EMU), on the basis of their location advantages during 1980-2010 period. The model focuses on the impact of EMU on FDI inflows and indicates that the monetary union has differentiated impact on FDI inflows across individual member countries. Euro zone membership is statistically significant but a negative determinant in the cases of Greece, Portugal, France, Belgium and Spain. Furthermore, for both Germany and Ireland the Euro area membership is a negative but statistically insignificant FDI inflow factor, while in the cases of Netherlands and Finland it is positive but also statistically insignificant. The results imply that countries with low competitiveness have not gained from the entrance in European Monetary Union, in terms of Foreign Direct Investment inflows

Effects of European Monetary Integration on Intra-EMU Foreign Direct Investment

The creation of the European Monetary Union (EMU) created the conditions for increased trade and economic growth for the member countries. The initial hypothesis regarding the impact of euro launch in terms of Foreign Direct Investment (FDI) inflows was that monetary integration will affect positively the FDI. The aim of this paper is to construct and test a model explaining the intra-EMU FDI position of various EMU countries on the basis of their location advantages during 1985 - 2011 period. The model consists of variables approximating location advantages as these are suggested by economic theory and empirical research like market size, labor cost, openness, technology, interest rate and introduction of the Euro. The model focuses on the impact of EMU on FDI inflows and indicates that the monetary union has no significant impact on FDI inflows across individual member countries. The European market integration degraded the motives for market seeking FDI. Individual markets are now easier to be served through the conventional trade networks, and import substituting FDI becomes a less attractive option for the expansion of firms in Europe

MNEs entry strategies through a distance framework: A new perspective

The aim of the paper is to conceptually reconcile entry-mode strategy with the CAGE distance framework, going beyond narrow country-level borders and turning its attention to firm-level analysis. This main objective is split into two complementary intentions: first, the transformation of CAGE to "CIGE" distance framework. And, second, the approach of "CIGE" through the reconciliation of the TCA and Institutional theory. The context of the present analysis is emerging markets, since such economies frame the emerging organizational arrangements, practices and structures within which firms operate. The basic argument of the paper is that entry strategies in emerging markets will be affected by both transaction and institutional considerations. The paper contributes to the existing literature by conceptualizing entry-mode choice via a pluralistic, in terms of distance, framework. It introduces institutional distance into CAGE and approaches institutional distance as a "reservoir" of different institutional aspects that take into account challenges related to different institutional voids caused by various intermediaries. It integrates the reconciliation of TCA and Institutional theory into a unified distance setting in order to create a genuine interactive and dynamic conceptual basis on which TCA and institutional theory can apply. Last, it presents conceptual and managerial implications that open up new avenues for future empirical research

Inter-country FDI Distribution Patterns in the EU

The aim of this paper is to examine the impact of economic integration on intra EU FDI. More specifically, a model is employed regressing country relative intensities of inward FDI originated from within the EU against a set of variables expected to affect the FDI inter-country distribution. Trade appears to be a significant and positive factor mobilizing intra regional inward FDI in almost all cases. The next important determinants of intra EU FDI are supply cost variables. Capital productivity and development level considerations seem to have played a minor role in determining patterns of intra-EU FDI.regional integration, economic convergence, FDI

A cross country analysis of outward foreign direct investment patterns

Purpose – To evaluate the relevance of the source country idiosyncratic factors in determining the firm's foreign direct investment (FDI) propensity and consequently the country's outward FDI position. Design/methodology/approach – A sample containing all countries with positive outward FDI flows for the whole period between 1976 and 1999 is selected. The sample consists of 25 countries and is divided in three groups, namely advanced countries, middle-income countries and developing countries. An econometric model is estimated for each country group aiming to determine the variables affecting outward FDI position. Findings – Market structure differentiation and openness are the only variables affecting outward FDI in all country groups. Marginal efficiency of capital is the significant variable in advanced and middle-income countries. All other variables, namely technology, human capital and exchange rate affect outward FDI position of advanced countries. Research limitations/implications – The list of FDI explanatory variables is not an exhaustive one. Changes of country income indicating changes of economic development may be explicitly introduced among others as an explanatory variable in a model, with outward FDI changes as the dependent variable in order to identify any relation between the two. Practical implications – A very useful source of information for policy makers. Originality/value – The validity of the model is tested over each country income group aiming at capturing variations in the statistical significance of the FDI explanatory variables between countries that have passed certain economic development thresholds.Countries, Direct investment, Economic policy