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Regions, Globalization, and the Knowledge-Based Economy$
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John H. Dunning

Print publication date: 2002

Print ISBN-13: 9780199250011

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199250014.001.0001

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The Impact of the Completion of the European Internal Market on FDI

The Impact of the Completion of the European Internal Market on FDI

Chapter:
(p.131) 6 The Impact of the Completion of the European Internal Market on FDI
Source:
Regions, Globalization, and the Knowledge-Based Economy
Author(s):

John H. Dunning

Publisher:
Oxford University Press
DOI:10.1093/0199250014.003.0007

The impact of the completion of the European Internal Market Programme (IMP) on the geographical distribution of economic activity within the European Community (now Union) is considered. More particularly, the empirical validity of a number of hypotheses, drawn from foreign direct investment (FDI) theory, on the likely effect of the removal of tariff barriers on intra‐EC and extra‐EC trade and FDI flows and the relationship between the two are considered. The evidence strongly suggests that the twin forces of regionalization and localization have been accelerated by recent European integration, and that the balance between the two is strongly determined by the knowledge intensity and mobility of the economic activities involved.

Keywords:   economic activity, European Community, European Internal Market, European Union, foreign direct investment, geographical distribution, knowledge‐based economy, localization, regionalization, tariff barriers

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