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The Effects of Regional Economic Integration and Foreign Direct Investment on Greenland's Economic Development

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  • Toptancî, Alî

Abstract

Countries need Regional Economic Integration (REI) for their economic development. In particular, the Regional Economic Integration established between Greenland and the Eurozone and European Free Trade Association (EFTA) countries aims to increase the productivity of factors through competition. Greenland, which might seem unsuitable for investment due to its location, offers significant economic diversification. In an REI between the Eurozone and EFTA countries, Greenland will play a critical role in the economic development of both. However, while Greenland's participation in the REI is vital for its economic growth, additional obligations and high costs must also be considered, and its inability to participate could lead to lower economic performance. Therefore, Foreign Direct Investment (FDI) in Greenland will facilitate its participation in the REI and increase its competitiveness. This study will examine the impact of Regional Economic Integration (REI) between Greenland and the Eurozone and EFTA countries on the Greenlandic economy, and how Foreign Direct Investment (FDI) stemming from the REI will contribute to Greenland's economic development.

Suggested Citation

  • Toptancî, Alî, 2026. "The Effects of Regional Economic Integration and Foreign Direct Investment on Greenland's Economic Development," MPRA Paper 127697, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127697
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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