Does economic integration affect FDI inflows to member countries equally? An empirical analysis for Europe
Olivia Galgau and
Khalid Sekkat
No 04-025.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles
Abstract:
The paper investigates whether the impact of the Single Market Program (SMP) on FDI inflows to Europe is different across member countries and tries to highlight potential explanations. One of them being related to countries’ specialization, the investigation is also conducted at the sector level. The results show that the impact of the SMP differs across countries and sectors. However, the industrial specialization story does not seem to be the right explanation to the differences across countries. Further investigation suggests that the functioning of institutions constitutes a better explanation. Hence, further benefits from the SMP in terms re-allocation of activities can be expected provided additional reforms are adopted.
Keywords: FDI; Economic integration; The European Union. (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Pages: 37 p.
Date: 2004-06
New Economics Papers: this item is included in nep-eec
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Published by: Centre Emile Bernheim, Bruxelles
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