IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxiiy2009i2p27-36.html
   My bibliography  Save this article

The Role of Structural Funds in Economic and Social Cohesion Process

Author

Listed:
  • Diana-Mihaela Pociovalisteanu
  • Emilian M. Dobrescu

Abstract

The aim of this paper is to explain Foreign Direct Investment of German enterprises. The theory of Foreign Direct Investment identifies a variety of location-specific, strategic, financial, as well as other motives which firms have in order to become multinationals. We apply the above theoretical schemata to the case of German enterprises and we also consider the evolution of German FDI in a historical context. The main conclusion of the research findings is that financial, strategic and location specific factors have been historically very influential in the decision of these firms to invest abroad. Thus both big businesses and SMEs invest mainly in Europe, with the US as the second-best location option. However, nowadays, there is a limited but essential trend that this may change. We argue that although historically location specific factors have been the most influential for FDI activity, in the current globalisation process German enterprises tend to shape their investment strategy on broader factors which influence core developments in the international economy. Thus the emergence of the BRIC (Brazil, Russia, India, China) emerging markets may change for ever the character of German FDI. If however this does not occur, the German industry may face, severe competitive pressures form its foreign rivals over the next years.

Suggested Citation

  • Diana-Mihaela Pociovalisteanu & Emilian M. Dobrescu, 2009. "The Role of Structural Funds in Economic and Social Cohesion Process," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 27-36.
  • Handle: RePEc:ers:journl:v:xii:y:2009:i:2:p:27-36
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/09_2_p2.pdf
    Download Restriction: no

    More about this item

    Keywords

    Structural funds; cohesion policy; economic development;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xii:y:2009:i:2:p:27-36. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marios Agiomavritis) The email address of this maintainer does not seem to be valid anymore. Please ask Marios Agiomavritis to update the entry or send us the correct email address. General contact details of provider: http://www.ersj.eu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.