What is the impact of currency unions on fdi flow? : evidence from eurozone countries.
Authors
Kyriacos Aristotelous
Stilianos Fountas
Keywords:
Currency unions, Euro, EMU, FDI, F15, F21, F36
Abstract
This paper investigates the effect of EMU on inward FDI flows to the Eurozone
using panel data from 22 OECD countries for the period 1973-2006. The empirical
findings suggest that the EMU led to a statistically significant overall increase in
inward FDI flows to countries that adopted the euro as their national currency.
They also show that the EMU effect on inward FDI flows differs substantially across
member countries.