Inter-country FDI Distribution Patterns in the EU
The aim of this paper is to examine the impact of economic integration on intra EU FDI. More specifically, a model is employed regressing country relative intensities of inward FDI originated from within the EU against a set of variables expected to affect the FDI inter-country distribution. Trade appears to be a significant and positive factor mobilizing intra regional inward FDI in almost all cases. The next important determinants of intra EU FDI are supply cost variables. Capital productivity and development level considerations seem to have played a minor role in determining patterns of intra-EU FDI.