Title: The impact of Euro-zone crisis on foreign direct investment inflows in the EU-15

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.

DOI: 10.1504/GBER.2016.075531

Global Business and Economics Review, 2016 Vol.18 No.2, pp.216 - 226

Received: 03 Jun 2014
Accepted: 03 Jan 2015
Published online: 28 Mar 2016 *

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