Journal article
Foreign direct investment and the single market
- Abstract:
- This paper extends the theory of multinational corporations, identifying three distinct influences of internal trade liberalization by a group of countries on the level and pattern of inward foreign direct investment (FDI). First, the tariff jumping motive encourages plant consolidation. Second, the export platform motive favours FDI with only a single union plant relative to exporting, and may induce a firm which has never exported to invest. Finally, reduced internal tariffs increase competition from domestic firms, which dilutes the other motives and may induce a ‘Fortress Europe’ outcome of multinationals leaving union markets even though external tariffs are unchanged.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
- Publisher:
- Blackwell Publishing
- Journal:
- Manchester School More from this journal
- Volume:
- 70
- Issue:
- 3
- Pages:
- 291-314
- Publication date:
- 2002-06-01
- DOI:
- EISSN:
-
1467-9957
- ISSN:
-
1463-6786
- Language:
-
English
- Subjects:
- UUID:
-
uuid:19a90c3a-1758-4c05-8f31-fc6a15f17b61
- Local pid:
-
ora:2131
- Deposit date:
-
2008-06-27
Terms of use
- Copyright holder:
- Blackwell Publishers Ltd and the Victoria University of Manchester
- Copyright date:
- 2002
- Notes:
- The full-text of this article is not available in ORA at this time. Citation: Neary, J. P. (2002). 'Foreign direct investment and the single market', The Manchester School, 70(3), 291-314. [The definitive version is available at www.blackwell-synergy.com].
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