Foreign Direct Investment and European Integration in the 1990s

Peter H Egger · Michael Pfaffermayr

96 citations0/0 files storedWorld Economy

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International Business and FDI Global trade and economics European Union Policy and Governance

Abstract

This paper examines the effects of EU integration in the 1990s on the FDI relations in Europe. We find that the completion of the Single Market, the 1995 enlargement and the so‐called Eastern enlargement are characterised by a substantial, positive anticipation effect in the period between the announcement and the formal establishment of each integration step. Neither the Single Market Programme nor the previous enlargement exhibited any further positive effects on intra‐EU FDI volumes after their establishment.

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