Abstract
This chapter concerns the developments in the European Community1 (EC) in the 1980s, and links these to the literature on the determinants of foreign direct investment (FDI) in the EC. It is argued that the economic institutional developments of the EC, which involve integration in one form or another, function in two important ways. One is the conventional quest for internal market efficiency, and the second is the creation of an implicit set of incentives for firms to invest within the EC. For foreign firms, these incentives centre on the issue of being an insider firm or an outsider firm, and the expectations about future income streams attaching to the alternatives.
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Clegg, J., Scott-Green, S. (2000). The Determinants of New Foreign Direct Investment Capital Flows into Europe: The US and Japan Compared. In: Millar, C.C.J.M., Grant, R.M., Choi, C.J. (eds) International Business. The Academy of International Business Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230596740_8
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DOI: https://doi.org/10.1057/9780230596740_8
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