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Economic Integration: MNEs. Primary aim: Effects on FDI-flows deriving from ip on Regional Integration Agreements (RIAs). Ip option: Investment liberalisation. Three groups of countries: Active promotion (UK) Passive promotion (Germany) Promotion in transition (Scandinavian countries).
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Economic Integration: MNEs Primary aim: Effects on FDI-flows deriving from ip on Regional Integration Agreements (RIAs)
Ip option: Investment liberalisation • Three groups of countries: • Active promotion (UK) • Passive promotion (Germany) • Promotion in transition (Scandinavian countries)
Models for ip-analyses: • The “tariff-jump model” (horizontal FDI) • The “internalization model” (vertical FDI and trade takes place inside firms ) Policy-effects of liberalisation on • ‘Interregional FDI-flows’ • ‘Intra-regional FDI-flows’
Changes in inter- and intra-regional flows due the EU’s Single Market Programme (SMP)? • Probable impact of SMP on FDI for the whole EU: • The share of worldwide FDI flowing 1982-7 1991-3 • Into the EU 28,2% 44,4% • (into the USA) 39,9% 10,2% • Individual countries Intra-EU FDI Extra-EU • inflows inflows • (EU-12 = 100) • 1986 1990-3 1986 1990-3 • Loosers • UK 25 14 47 37 • Netherlands 18 12 13 10 • Spain 17 14 15 9 • Winners • Belg/Lux 7 17 2 9 • Ireland 1 7 0 4 • Germany 9 11 3 5