The Single European Market, the European Monetary Union and United States and Japanese FDI Flows to EU

Transnational Corprations, Vol. 19, No. 1, p. 55-68, 2010

Posted: 6 Jan 2013

See all articles by Irini Smaragdi

Irini Smaragdi

Independent

Constantinos Katrakilidis

Aristotle University of Thessaloniki - Department of Economics

Nikos Varsakelis

Aristotle University of Thessaloniki - Department of Economics

Date Written: 2010

Abstract

This paper investigates the possible impacts of the two major structural changes, namely the establishments of the Single European Market and the European Monetary Union, on FDI flows from the United States and Japan to 12 European Union countries. It applies the panel LM unit-root methodology to a data set consisting of United States and Japanese FDI flows to twelve EU countries for the period 1965-2005. The findings reveal that the patterns of FDI changed after the major institutional changes in question. However, Japanese FDI was affected more by the implementation of the Single Market Programme while the United States FDI was affected more by the creation of the European Monetary Union.

Keywords: Foreign Direct Investment, Single European Market, European Monetary Union

JEL Classification: C22

Suggested Citation

Smaragdi, Irini and Katrakilidis, Constantinos and Varsakelis, Nikos, The Single European Market, the European Monetary Union and United States and Japanese FDI Flows to EU (2010). Transnational Corprations, Vol. 19, No. 1, p. 55-68, 2010, Available at SSRN: https://ssrn.com/abstract=2196884

Irini Smaragdi

Independent ( email )

Constantinos Katrakilidis (Contact Author)

Aristotle University of Thessaloniki - Department of Economics ( email )

Thessaloniki, 54124
Greece

HOME PAGE: http://users.auth.gr/katrak

Nikos Varsakelis

Aristotle University of Thessaloniki - Department of Economics ( email )

Thessaloniki, 54006
Greece

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