Authors: İmre Ersoy; Kazım Okan Erol
Addresses: European Union Institute, Goztepe Campus, Marmara University, Building of Institutes, 3rd Floor, 34722 Kadıköy, İstanbul, Turkey ' Ministry of Finance of Turkey, Necatibey Cad. No. 41 Karaköy, Istanbul, 34425, Turkey
Abstract: The aim of this paper is to scrutinise the impact of financial crises on foreign direct investments (FDIs) of the EU-15 by using dynamic panel data analysis. The empirical analysis depicts that financial crisis is one of the most important determinants of FDI inflows in the EU-15. Our main finding is that contrary to global financial crisis, Euro-zone crisis has increased FDI inflows to Greece, Italy, Ireland, Portugal and Spain (GIIPS). Yet, FDI inflows in crisis time do not always indicate successful FDI policy.
Keywords: foreign direct investment; FDI inflows; European Union; financial crisis; dynamic panel data models; Eurozone crisis; EU-15.
Global Business and Economics Review, 2016 Vol.18 No.2, pp.216 - 226
Available online: 30 Dec 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article