Aurora Galego () (Department of Economics, University of Évora) Carlos Vieira () (Department of Economics, University of Évora) Isabel Vieira () (Department of Economics, University of Évora)
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Is foreign direct investment crossing Europe towards the East? During the last few years, news of foreign direct disinvestments have regularly emerged on the Portuguese media. The group of suspects have been identified as the new European Union members, where low wages, low corporate taxes and a highly educated labour force seems to attract multinationals eager to cut costs in an economy slowly recovering from recession. The clues of investment displacements abound, but no definite proof has yet been found in the empirical literature. This paper considers the available evidence, contributing to avoid possibly unfair incriminations.
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Paper provided by University of Évora, Department of Economics (Portugal) in its series Economics Working Papers with number
16_2005.
Find related papers by JEL classification: F15 - International Economics - - Trade - - - Economic Integration F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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