Nottingham Centre for Research on
Globalisation and Economic Policy (GEP)

GEP Research Paper 02/31

Is there a potential for increases in FDI for Central and Eastern European countries following EU accession?

H. Görg and D. Greenaway

This paper was subsequently published in Foreign Direct Investment in the Real and Financial Sector of Industrial Countries (H. Herrmann and R.E. Lipsey (eds)), Springer, Berlin, 2003, pp.165-183.

Abstract

Gravity modelling has been used extensively in analysing trade flows but less so for cross-border investment. Recent theoretical work provides an underpinning for applications to FDI. In this paper we estimate a gravity model to evaluate the potential for increased FDI for a sample of Eastern European countries, following accession to the EU. Preliminary results suggest limited potential in manufacturing but greater scope in services.

Issued in December 2002.

This paper is available in PDF format .

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