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Determinants of inward FDI in manufacturing: a cross-sectoral analysis for Greece

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  • Klimis Vogiatzoglou
  • Theodore Tsekeris

Abstract

This paper examines the sectoral patterns and determinants of inward foreign direct investment (FDI) in Greek manufacturing. The panel-econometric analysis across manufacturing sectors reveals that, in contrast with low labour costs, a sector's size, labour productivity, scale economies and R%D intensity do significantly affect the attraction of FDI across manufacturing industries. Additionally, the empirical findings imply that policy measures which strengthen the natural resources-based advantages, promote industrial clusters and export processing zones, as well as upgrade the export-oriented logistics and outsourcing activities, would be expected to raise the inflow of manufacturing FDI in the country.

Suggested Citation

  • Klimis Vogiatzoglou & Theodore Tsekeris, 2016. "Determinants of inward FDI in manufacturing: a cross-sectoral analysis for Greece," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(4), pages 347-365.
    • Handle: RePEc:ids:ijecbr:v:11:y:2016:i:4:p:347-365
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    Cited by:

    1. Mumtaz Hussain Shah, 2017. "Political Institutions and the Incidence of FDI in South Asia," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 21-42, March.

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