Bruno, R;
Ferreira Campos, N;
Estrin, S;
(2020)
The Effect on Foreign Direct Investment of Membership in the European Union.
Journal of Common Market Studies
10.1111/jcms.13131.
(In press).
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Abstract
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.
| Type: | Article |
|---|---|
| Title: | The Effect on Foreign Direct Investment of Membership in the European Union |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1111/jcms.13131 |
| Publisher version: | http://dx.doi.org/10.1111/jcms.13131 |
| Language: | English |
| Additional information: | © 2020 The Authors. JCMS: Journal of Common Market Studies published by University Association for Contemporary European Studies and John Wiley & Sons Ltd This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
| Keywords: | deep economic integration, foreign direct investment, European Union, structural gravity model, single market |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10106696 |
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