Earnings From Foreign Direct Investment: Possible Effects on Domestic Economies and Patterns in EU Countries

Abstract

The paper deals with the flow of earnings from inward and outward foreign direct investment. The paper starts with a review of some works which stress the intertemporal effects on the balance of payments and from it on the real sector of the economy. This is designed to give an introduction to the possible effects of earnings. Patterns of direct investment and earnings in the EU as a whole and in each member country are analysed.. The EU countries show different patterns with regard to both the size and the underlying trends of net incomes from foreign direct investment. This is followed by a more detailed analysis of the UK earnings position with each country of the European Unionforeign direct investment effects on EU economies