search query: @indexterm FOREIGN INVESTMENT / total: 1949
reference: 116 / 1949
| Author: | |
| Title: | Formal integration: FDI and trade in Europe |
| Journal: | Baltic journal of economics
2005 : AUTUMN-WINTER, VOL. 5:1, p.5-27 |
| Index terms: | Central Europe Eastern Europe European Union Foreign investment Integration Trade |
| Language: | eng |
| Abstract: | The objective of this article is to explain why formal integration, such as membership of the European Union (EU), should matter to Central and Eastern Europe (CEE). This study analyses e.g. relationship of the two forces of real integration: trade and foreign direct investment. The study suggests that FDI and trade are complements at the bilateral aggregate country level within Europe. The analysis of intensity of relationship betweeb FDI and trade indicates that causation is two-way and much greater for the chain of causation running from trade to FDI especially in intra-Union flows, nevertheless FDI is also a especially important catalyst of trade between the EU and CEE countries. |
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