Comparative study of FDI in Central and Eastern Europe and the Mediterranean |
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| Affiliation: | 1. Department of Surgery, Johns Hopkins University School of Medicine, Baltimore, MD;2. Johns Hopkins Children''s Center, Baltimore, MD;3. Department of Anesthesiology and Critical Care Medicine, Johns Hopkins University School of Medicine, Baltimore, MD;4. Department of Otolaryngology and Head and Neck Surgery, Johns Hopkins University School of Medicine, Baltimore, MD |
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| Abstract: | The European Union (EU) is currently being exposed to strong integration dynamics. However, the full implications of such dynamics for the location of foreign direct investment (FDI) for both the European Union and the bordering countries are not understood. We construct a panel of more than 3500 European multinationals that have invested in Central and Eastern Europe (CEE) and the Mediterranean (MED) over the 1990–1997 period in 48 NACE 3 industries. After controlling for industry and time-specific effects, it is found that Central and Eastern Europe displays a greater potential in the attraction of FDI flows when compared to the Mediterranean region. |
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