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The geography of foreign investments in the EU neighbourhood

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  • Ascani, Andrea
  • Crescenzi, Riccardo
  • Iammarino, Simona

Abstract

This paper aims at investigating the drivers of Multinational Enterprise (MNE) investment in countries linked to the 'core' of the European Union (EU-15) by different degrees of functional, economic and political integration: the EU 'New' Member states, Accession and Candidate countries, European Neighbourhood Policy countries, as well as Russia. Understanding the drivers of Foreign Investment (FDI) in these countries is highly relevant in consideration of their increasing integration into the global market and the strong influence exerted by the EU on this process. By employing data on individual greenfield investment projects for the period 2003 to 2008, this paper aims to disentangle the drivers of FDI in these countries for different industrial sectors, business functions and investment origins. The empirical results suggest that FDI in the area tends to follow market-seeking and efficiency-oriented strategies, and show path-dependency and concentration patterns that may reinforce core-periphery development trajectories in the EU neighbourhood.

Suggested Citation

  • Ascani, Andrea & Crescenzi, Riccardo & Iammarino, Simona, 2017. "The geography of foreign investments in the EU neighbourhood," LSE Research Online Documents on Economics 63698, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:63698
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    File URL: http://eprints.lse.ac.uk/63698/
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    2. Cieślik Andrzej, 2019. "Determinants of foreign direct investment from EU-15 Countries in Poland," Central European Economic Journal, Sciendo, vol. 6(53), pages 39-52, January.
    3. Andrzej Cieślik, 2020. "What attracts multinational enterprises from the new EU member states to Poland?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 253-269, June.
    4. Samakhavets Maryia & Hrechyshkina Olena, 2020. "Main characteristics of the foreign investment development of Belarus," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 48(48), pages 129-139, June.
    5. Gurshev Oleg, 2019. "What determines foreign direct investment in Russia?," Central European Economic Journal, Sciendo, vol. 53(6), pages 311-322, January.
    6. Dalila Ribaudo, 2023. "Tracking the Van: The role of forward linkages in logistics MNEs' location choices across European NUTS 3 regions," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 331-362, April.

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    More about this item

    Keywords

    multinational enterprises; FDI; location choices; European Union; European neighbourhood policy;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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