Inward Foreign Direct Investments in the European Union: Regional Distribution and Determinants (2012:6)

Economic growth has been high on the European agenda for quite a while, with initiatives such as the Europe 2020 strategy and, more recently, the Compact for Growth and Jobs. The initiatives are numerous, but they do not necessarily lead to enhanced growth.

Foreign direct investments, FDI, are considered to be an important engine for growth in the European Union. Indeed, the EU attracts quite a substantive amount of foreign direct investments, but the flow of investments seems to differ considerably between the regions.

In this report the Professors José Villaverde and Adolfo Maza analyses the factors that determine whether a region attracts FDI. The authors also formulate recommendations on how the EU can become more attractive to this specific type of growth triggering investments.

The publication is part of SIEPS research projec The Future Single Market.

José Villaverde is Full Professor of Macroeconomics at the University of Cantabria, Spain, and Adjunct Professor in the Kemmy Business School at the University of Limerick. Adolfo Maza is Associate Professor of Macroeconomics at University of Cantabria, Spain.