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The Determinants of Foreign Direct Investment Flows in EU: Dynamic Panel Data Analysis


  • Zeren, Fatma

    () (Istanbul University)

  • Ergun, Suzan

    () (Inonu University)


The aim of this study is to modify the factors that effect the foreign direct investments (FDI) inflows to the European Union countries. These factors are investigated by using panel data analysis over the 1995-2007 periods. Empirical results show that beside the openness and development level, especially gross domestic growth rate increase the FDI inflows. On the other hand, it's identified that current account balance and gross capital formation are negatively related to FDI inflows.

Suggested Citation

  • Zeren, Fatma & Ergun, Suzan, 2010. "The Determinants of Foreign Direct Investment Flows in EU: Dynamic Panel Data Analysis," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 1(4), pages 1-67, October.
  • Handle: RePEc:ris:buecrj:0004

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    Cited by:

    1. Elif Guneren Genc & Ozlem Deniz Basar, 2015. "The Impact of the 2008 Crisis on Total Insurers¡¯ Investment Portfolio in Europe: Dynamic Panel Approach," Research in World Economy, Research in World Economy, Sciedu Press, vol. 6(1), pages 208-214, March.

    More about this item


    Foreign direct investment; Gross domestic product; European Union; Dynamic panel data; System GMM method;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements


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