The determinants of foreign direct investment outflows from the European Union countries.

Mihci H., ÇAĞATAY S., Koska O. A.

ECONOMICS BULLETIN, vol.31, no.3, pp.2653-2666, 2011 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 31 Issue: 3
  • Publication Date: 2011
  • Journal Name: ECONOMICS BULLETIN
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
  • Page Numbers: pp.2653-2666
  • Hacettepe University Affiliated: Yes

Abstract

This paper employs a panel econometric model, and takes the horizontal and vertical FDI approach into account in the same empirical specification to scrutinize the determinants of FDI outflows from the selected EU countries at the industry level. We show that both cost related factors and potential demand are important and they mostly significantly affect FDI outflows from these selected EU countries.