IDEAS home Printed from https://ideas.repec.org/p/jrs/wpaper/201915.html
   My bibliography  Save this paper

The effect of restrictive measures on cross-border investment in the European Union

Author

Abstract

This study sheds light on the effect of restrictive policies, such as screening mechanisms, on mergers and acquisitions (M&A) flows into EU Member States in the period 2011-2018, by implementing an augmented gravity model. The results show that different restrictive measures affect cross-border investments unequally, and that the presence of screening mechanisms per se does not negatively affect cross-border investments. When we perform the analysis by sector, results suggest that cross-border investments in manufacturing and non-financial services are negatively influenced by restrictive measures, such as restrictions on foreign personnel being employed in key positions, or restriction on the establishment of branches, land acquisition or profit and capital repatriations.

Suggested Citation

  • Gregori, Wildmer & Nardo, Michela, 2019. "The effect of restrictive measures on cross-border investment in the European Union," Working Papers 2019-15, Joint Research Centre, European Commission (Ispra site).
  • Handle: RePEc:jrs:wpaper:201915
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/bitstream/JRC119285/jrc119285_ma_in_eu_jrcwp.pdf
    Download Restriction: no

    More about this item

    Keywords

    cross-border investment; M&A; EU; FDI; statutory restrictions; gravity model;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • K20 - Law and Economics - - Regulation and Business Law - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:jrs:wpaper:201915. 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: (Peter Benczur). General contact details of provider: http://edirc.repec.org/data/eejrcit.html .

    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.