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The European Union, southern multinationals and the question of the 'strategic industries'

Author

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  • Clifton, Judith
  • Díaz-Fuentes, Daniel

Abstract

This paper analyzes how the European Union has responded to Inward Foreign Direct Investment from Emerging Markets, particularly in the so-called Strategic Industries. Attention is focused on two sectors which have long been considered strategic assets by most countries around the world for decades: energy and telecommunications. In order to understand the dynamics of the EU's international investment climate, particularly from the perspective of emerging markets, the paper contains three main levels of analysis. Firstly, the changing international context, in particular, the extent to which IFDI from emerging markets has challenged the status quo of the traditional investment climate, as well as the unfolding financial crisis and economic recession. Secondly, the European authorities, principally the European Commission (EC), as the main institution responsible for forging the European Single Market and ensuring the “four freedoms,” (goods, services, capital, and people). Thirdly, individual member state behavior, since it lies with national governments to establish FDI policy, and satisfy domestic political economy and welfare demands. It concludes that, when analysed comparatively, the EU is still one of the world's most open regimes to IFDI and, though there is some evidence of protectionism vis-a-vis IFDI from emerging markets, there is also evidence of protectionism among member state economies themselves.

Suggested Citation

  • Clifton, Judith & Díaz-Fuentes, Daniel, 2010. "The European Union, southern multinationals and the question of the 'strategic industries'," MPRA Paper 33040, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33040
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    File URL: https://mpra.ub.uni-muenchen.de/33040/1/MPRA_paper_33040.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/33047/1/MPRA_paper_33047.pdf
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    References listed on IDEAS

    as
    1. Takeshi Koyama & Stephen S. Golub, 2006. "OECD's FDI Regulatory Restrictiveness Index: Revision and Extension to more Economies," OECD Working Papers on International Investment 2006/4, OECD Publishing.
    2. Stephen S. Golub, 2003. "Measures of Restrictions on Inward Foreign Direct Investment for OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(1), pages 85-116.
    3. Dilek Aykut & Andrea Goldstein, 2006. "Developing Country Multinationals: South-South Investment Comes of Age," OECD Development Centre Working Papers 257, OECD Publishing.
    4. Fabienne Ilzkovitz & Adriaan Dierx & Nuno Sousa, 2008. "An analysis of the possible causes of product market malfunctioning in the EU: First results for manufacturing and service sectors," European Economy - Economic Papers 2008 - 2015 336, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Carole RENTSCH & Matthias FINGER, 2014. "Yes, no, maybe: the ambiguous relationships between State-owned enterprises and States," Departmental Working Papers 2014-05, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Clifton, Judith & Díaz-Fuentes, Daniel, 2011. "La Nueva Política Económica de la OCDE ante el cambio en la Economía Mundial
      [The New Political Economy of the OECD in a context of Shifting World Wealth]
      ," MPRA Paper 33010, University Library of Munich, Germany.
    3. Filippov, Sergey, 2012. "European investment promotion agencies vis-à-vis multinational companies from emerging economies: Comparative analysis of BRIC investor targeting," MERIT Working Papers 076, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Clifton, Judith & Díaz-Fuentes, Daniel, 2010. "Is the European Union ready for foreign direct investment from emerging markets?," MPRA Paper 33036, University Library of Munich, Germany.

    More about this item

    Keywords

    Foreign Direct Investment; Strategic Industries; Protectionism; Europe; Southern Multinational Corporations; BRIC;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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