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What is the Impact of Currency Unions on FDI flows? Evidence from Eurozone Countries

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Abstract

This paper investigates the effect of EMU on inward FDI flows to eurozone using panel data from 22 OECD countries for the period 1973-2006. The empirical findings suggest that the EMU led to a statistically significant overall increase in inward FDI flows to countries that adopted the euro as their national currency. They also show that the EMU effect on inward FDI flows differs substantially across member countries with the core countries having benefited mostly from FDI flows.

Suggested Citation

  • Kyriacos Aristotelous & Stilianos Fountas, 2009. "What is the Impact of Currency Unions on FDI flows? Evidence from Eurozone Countries," Discussion Paper Series 2009_10, Department of Economics, University of Macedonia, revised May 2009.
  • Handle: RePEc:mcd:mcddps:2009_10
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    Cited by:

    1. repec:bus:wpaper:v:2:y:2013:i:1:p:1-49 is not listed on IDEAS
    2. Pantelis Pantelidis & Dimitrios Kyrkilis & Efthymios Nikolopoulos, 2014. "Effects of European Monetary Integration on Intra-EMU Foreign Direct Investment," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(4), pages 67-74, October-D.
    3. Xenia Florentina Radu, 2013. "The Euro Impact on Foreign Direct Investment in EMU Countries," Working Papers 2, Bucharest Academy of Economic Studies, Research Center in International Business and Economics (RCIBE).

    More about this item

    Keywords

    bank Currency Unions; Euro; EMU; FDI.;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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