The Effect on Foreign Direct Investment of Membership in the European Union
Nauro Ferreira Campos and
Journal of Common Market Studies, 2021, vol. 59, issue 4, 802-821
This article explores the impact of EU membership on foreign direct investment (FDI). It analyses empirically how the effects of such deep integration differ from other forms and investigates what drives these effects. Using a structural gravity framework on annual bilateral FDI data for almost every country in the world from 1985 to 2018, we find EU membership leads to about 60 per cent higher FDI investment into the host economy from outside the EU, and around 50 per cent higher intra‐EU FDI. Moreover, we find that the effect of EU membership on FDI is larger than from membership of the North American Free Trade Agreement, the European Free Trade Association and the Southern Common Market, and that the single market is the cornerstone of this differential impact.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Working Paper: The effect on foreign direct investment of membership in the European Union (2021)
Working Paper: The Effect on Foreign Direct Investment of Membership in the European Union (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:jcmkts:v:59:y:2021:i:4:p:802-821
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0021-9886
Access Statistics for this article
Journal of Common Market Studies is currently edited by Jim Rollo and Daniel Wincott
More articles in Journal of Common Market Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().