Determinants of inward FDI in manufacturing: a cross-sectoral analysis for Greece
by Klimis Vogiatzoglou; Theodore Tsekeris
International Journal of Economics and Business Research (IJEBR), Vol. 11, No. 4, 2016

Abstract: This paper examines the sectoral patterns and determinants of inward foreign direct investment (FDI) in Greek manufacturing. The panel-econometric analysis across manufacturing sectors reveals that, in contrast with low labour costs, a sector's size, labour productivity, scale economies and R&D intensity do significantly affect the attraction of FDI across manufacturing industries. Additionally, the empirical findings imply that policy measures which strengthen the natural resources-based advantages, promote industrial clusters and export processing zones, as well as upgrade the export-oriented logistics and outsourcing activities, would be expected to raise the inflow of manufacturing FDI in the country.

Online publication date: Fri, 17-Jun-2016

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