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Re-entering europe: does European union candidacy boost foreign direct investment?/ created by Kimberly A. Clausing and Cosmina L. Dorobantu

By: Contributor(s): Material type: TextTextSeries: Economics of transition ; Volume 13, number 1Oxford: Blackwell Publishing, 2005Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
ISSN:
  • 09670750
Subject(s): LOC classification:
  • HC244 ECO
Online resources: Abstract: This study examines the ability of the Central and Eastern European countries to attract foreign direct investment during the first decade of transition. After considering a model of profit maximizing firms, we undertake an empirical investigation of the factors that determine multinational firms' location decisions within Europe. We find empirical support for the traditional market size and cost factors. In addition, we examine the effect of key European Union announcements regarding the accession process. Results indicate that the announcements had statistically significant and quantitatively important effects on foreign direct investment in the Central and Eastern European candidate countries
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This study examines the ability of the Central and Eastern European countries to attract foreign direct investment during the first decade of transition. After considering a model of profit maximizing firms, we undertake an empirical investigation of the factors that determine multinational firms' location decisions within Europe. We find empirical support for the traditional market size and cost factors. In addition, we examine the effect of key European Union announcements regarding the accession process. Results indicate that the announcements had statistically significant and quantitatively important effects on foreign direct investment in the Central and Eastern European candidate countries

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