Kiel Working Papers, Kiel Institute for World Economics
No 1061:
Does the East Get What Would Otherwise Flow to the South? FDI Diversion in Europe
Claudia M. Buch, Robert M. Kokta and Daniel Piazolo
Abstract: This paper examines the FDI flows towards two regions in
the periphery of Europe: the Central and Eastern European countries (CEECs)
and the countries of Southern Europe. We investigate whether evidence
exists for FDI diversion from Southern Europe to the CEECs. A cursory
observation of recent FDI trends might give rise to such claims of
diversion. On the basis of gravity model equations, this paper compares the
expected and actual FDI figures. The findings lead us to conclude that
there is no evidence of FDI diversion between these two regions.
Keywords: European Integration, Transition Economies, FDI, Gravity Model.; (follow links to similar papers)
JEL-Codes: F15; F21; (follow links to similar papers)
43 pages, July 2001
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