The role of institutional and regulatory adjustments on Foreign Direct Investment in the European Union area

Evangelia Desli ()

Managerial and Decision Economics, 2018, vol. 39, issue 8, 907-920

Abstract: The paper examines the impact on Foreign Direct Investment inflows of a series of institutional and regulatory adjustments that were implemented by or imposed upon countries in the European Union (EU) following the start of the financial crisis. The study of 28 EU members over a period that includes the economic crisis era (1995–2015) provides evidence that these adjustments (government efficiency, quality of regulation, cost competitiveness, and reduction of corruption) matter only for the countries that are more financially robust but have no influence for the countries that received aid, and macroeconomic factors such as market size and trade openness are important.

Date: 2018
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https://doi.org/10.1002/mde.2972

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:39:y:2018:i:8:p:907-920

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