Foreign direct investment and the single market
|Title:||Foreign direct investment and the single market||Authors:||Neary, J. Peter||Permanent link:||http://hdl.handle.net/10197/1319||Date:||May-2002||Abstract:||This paper extends the theory of multinational corporations, identifying three distinct influences of internal trade liberalisation by a group of countries on the level and pattern of inward foreign direct investment (FDI). First, the tariff-jumping motive encourages plant consolidation. Second, the export platform motive favours FDI with only a single union plant relative to exporting, and may induce a firm which has never exported to invest. Finally, reduced internal tariffs increase competition from domestic firms, which dilutes the other motives and may induce a "Fortress Europe" outcome of multinationals leaving union markets even though external tariffs are unchanged.||Funding Details:||Economic and Social Research Council (ESRC)||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP01/24||Keywords:||Foreign direct investment; Market integration; Multinational corporations; Single Market||Subject LCSH:||International business enterprises
|Other versions:||http://www.ucd.ie/economics/research/papers/2001/WP01.24.pdf||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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