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Economic Integration in Europe and the Pattern of German Foreign Direct Investment

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Economic Integration

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Abstract

Economic integration in Europe has been accompanied by a rise in foreign direct investment (FDI) within the EU economies. In virtually all member states, real inflows and outflows of direct investment after the mid-1980s reached their highest level since the initial formation of the Common Market, and the proportion of the aggregate stock of world FDI located within EU member states is estimated to have risen from 31 per cent in 1985 to 39 per cent by 1995 (UNCTAD, 1996). This reflects rising levels of investment in the EU by non-EU nationals and EU firms themselves. The surge in cross-border investment largely occurred in the aftermath of the Single European Act of 1986/7, during the gradual implementation of the measures required to complete the internal market.

We are grateful to Ray Barrell, John Dunning and Melanie Lansbury for helpful comments and suggestions, and to the ESRC for financial support (grant number R000236306).

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Authors
  1. Florence Hubert
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  2. Nigel Pain
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Editor information

Editors and Affiliations

  1. University of Aegean, Greece

    George M. Korres (Professor) (Professor)

  2. Institute of Computational Mathematics, Crete Institute of Research and Technology, Greece

    George M. Korres (Professor) (Professor)

  3. Athens University of Economics and Business, Greece

    George C. Bitros (Professor of Economics) (Professor of Economics)

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© 2002 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Hubert, F., Pain, N. (2002). Economic Integration in Europe and the Pattern of German Foreign Direct Investment. In: Korres, G.M., Bitros, G.C. (eds) Economic Integration. Palgrave Macmillan, London. https://doi.org/10.1057/9780230629257_8

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