Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece

A questionnaire survey covering MNCs that had invested in Greece during the period 1995-2003 is carried out in order to determine the barriers of inward FDI in Greece through a phase of increased expectations on foreign investment from hosting the 2004 Olympiad. The underlying assumption made is that the views of the local managers reflect the views of the mother company when deciding to invest. Although the findings represent the time that the investment took place, the influence of the conditions shaping the economic environment at the time the survey was carried out is also discussed. The findings indicate that the primary barriers to foreign investors are bureaucracy, taxation, corruption, and the labor market structure and support those of previous quantitative studies, leading to the conclusion that there is no progress made regarding these factors, in order to enhance FDI attractiveness. It becomes crucial for Greece to modernize and upgrade state mechanisms, through a more effective organization and administrative policies.