Economic integration, foreign investment and international trade: the effects of membership of the European Union
Saul Estrin and
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
This paper investigates the importance of economic integration in simultaneously fostering foreign direct investment (FDI) and international trade. These have rarely been analyzed jointly using contemporary econometric methods. We estimate the effect of European Union (EU) membership on FDI inflows and trade using annual bilateral data from 34 OECD countries over 1985–2013. We find that EU membership increases FDI inflows by on average 28%. We jointly estimate the impact of EU membership on trade and FDI and find that they are substantial, with the one on trade larger than the one on FDI, in the order of double
Keywords: special economic integration effects; foreign direct investment; international trade; European Union; gravity model (search for similar items in EconPapers)
JEL-codes: F17 F21 F36 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://eprints.lse.ac.uk/86615/ Open access version. (application/pdf)
Working Paper: Economic integration, foreign investment and international trade: the effects of membership of the European Union (2017)
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:ehl:lserod:86615
Access Statistics for this paper
More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().