The determinants of foreign direct investment outflows from the European Union countries.

Abstract

This paper employs a panel econometric model, and takes the horizontal and vertical FDI approach into account in the same empirical specification to scrutinize the determinants of FDI outflows from the selected EU countries at the industry level. We show that both cost related factors and potential demand are important and they mostly significantly affect FDI outflows from these selected EU countries.Foreign Direct Investment; Environmental Sensitivity; European Union Countries.