The Impact of Eurozone Crisison Foreign Direct Investment Inflows in the EU 15

Ersoy İ. S., Erol K. O.

Global Business and Economics Review, vol.18, pp.216-226, 2016 (Scopus)

  • Publication Type: Article / Article
  • Volume: 18
  • Publication Date: 2016
  • Journal Name: Global Business and Economics Review
  • Journal Indexes: Scopus
  • Page Numbers: pp.216-226
  • Marmara University Affiliated: Yes

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.