Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-22T05:41:23.879Z Has data issue: false hasContentIssue false
  • English
  • Français

European Integration and German FDI: Implications for Domestic Investment and Central European Economies

Published online by Cambridge University Press:  26 March 2020

Jamuna Prasad Agarwal
Get access Rights & Permissions [Opens in a new window]

Extract

Since the mid-1980s foreign direct investment (FDI) outflows from Germany have increased considerably. Germany ranks after the US, UK and Japan as the fourth-most important global investor. The most rapid expansion of German FDI in the eighties occurred in the EU; now it is happening in Central Europe (Czech Republic, Hungary, Poland, Slovakia and Slovenia). The question arises whether economic integration is a major stimulant of German FDI. The Single Market programme was introduced in the EU in the eighties and it increased the degree of integration of the markets of member countries. This was particularly important for the service industries which had hitherto been heavily protected from foreign competition. Now the economic integration of the Central European countries with the EU is likely. They have already applied for EU membership. It is not clear when this will take place but during the interim phase, some of the advantages of economic integration (free trade, capital movement, economic aid) are available through ‘Europe Agreements’ between the EU and Central European countries (Langhammer 1992), and through CEFTA among the latter.

Type
Articles
Information
National Institute Economic Review , Volume 160 , April 1997 , pp. 100 - 111
Copyright
Copyright © 1997 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agarwal, J.P. (1980), ‘Determinants of foreign direct investment: a survey’, Weltwirtschaftliches Archiv 116 (4): pp. 739–773.CrossRefGoogle Scholar
Agarwal, J.P. (1990), ‘Determinants of foreign direct investment in Pacific-Rim countries’, The Asian Economic Review 32 (1), pp. 83–100.Google Scholar
Agarwal, J.P. (1994), ‘The effects of the single market programme on foreign direct investment into developing countries’, Transnational Corporations 3 (2), pp. 29–44.Google Scholar
Agarwal, J.P. (1996), ‘Does foreign direct investment contribute to unemployment in home countries?—an empirical survey’, Institute of World Economics, Discussion Paper no. 765, Kiel.Google Scholar
Agarwal, J.P. (1996a), ‘Impact of “Europe Agreements” on FDI in developing countries’, International Journal of Social Economics 23 (10/11), pp. 150–163.CrossRefGoogle Scholar
Agarwal, J.P. (1997), German MNEs: Consequences of Eastward Derive for Developing Countries, Revised version of the paper written for the International workshop on FDI, technology transfer and export orientation in developing countries organised by the United Nations, Institute for New Technologies, Maastricht, 15-16 November 1996.Google Scholar
Barrell, R., and, N. PainHubert, F. (1996), ‘Regionalism, innovation and the location of German direct investment’, National Institute Discussion Paper no. 91.Google Scholar
Beyfuss, J. (1996), ‘Erfahrung deutscher Auslandsinvestoren in Reformländern Mittel- und Osteuropas’, Beiträge zur Wirtschaftsund Sozialpolitik 232, Institut der deutschen Wirtschaft Cologne: Deutscher Institutsverlag.Google Scholar
Deutsche Bundesbank (1996), Kapitalverflechtung mit dem Ausland, Statistische Sonderveröffentlichung 10, Frankfurt.Google Scholar
Deutsche Bundesbank (1994, 1996 c), Technologische Dienstleistungen in der Zahlungsbilanz, Statistische Sonderveröffentlichung 12, Frankfurt.Google Scholar
Deutsche Bundesbank (1996a), Zahlungsbilanzstatistik, Statistisches Beiheft zum Monatsbericht 3, December.Google Scholar
Deutsche Bundesbank (1996b), Neuere Tendenzen in den wirtschaftlichen Beziehuzzgezz zwischen Deutschland und den mittelund osteuropäischen Reformländern, Monatsbericht, July: 31–47.Google Scholar
Deutsche Bundesbank (1997), Die Aktie als Finanzierungs- und Anlageinstrument, Monatsbericht January: 27–41.Google Scholar
Deutscher Industrie- und Handelstag (DIHT)(1996), Produktionsverlagerung als Element der Auslandsinvestitionen, Ergebnisse einer Unternehmungsbefragung im Hrbst 1996, Bonn.Google Scholar
Dunning, J.H. and Narula, R. (1996), ‘The investment development path revisited, some emerging issues’, in: Dunning, J.H. and Narula, R. (eds.), Foreign Direct Investment and Governments, Catalysts for Economic Restructuring, London, New York, pp. 1–41.Google Scholar
The Economist Intelligence Unit (EIU)(1996), Economic forecast, Economies in Transition, Eastern Europe and the Former Soviet Union: Regional Overview, 1st Quarter, pp. 25–35.Google Scholar
European Bank for Reconstruction and Development (EBRD)(1996), Transition Report 1996, Infrastructure and Savings, London.Google Scholar
European Commission and UNCTAD Division on Transnational Corporations and Investment (EU-UNCTAD) (1996), Investing in Asia's Dynamism: European Union Direct Investment in Asia, Luxembourg.Google Scholar
Frankfurter Allgemeine Zeitung (FAZ)(1996), Deutschland für ausländische Firmenkäufer attraktiv, 6 July: 11.Google Scholar
Frankfurter Allgemeine Zeitung (FAZ)(1997), Direktinvestitionen in Polen verdoppelt, 8 February: 16.Google Scholar
Hanson, G.H. (1995), ‘The effects of off-shore assembly on industry-location: evidence from US border cities’ NBER Working Paper 5400, New York.CrossRefGoogle Scholar
Hirsch, S. (1967), Location of Industry and International Competitiveness, Oxford: Clarendon Press.Google Scholar
Hoey, J. (1996), Germany's New Drive Eastwards, Economies in Transition, Eastern Europe and the Former Soviet Union: Regional Overview, 1st Quarter, pp. 5–16.Google Scholar
Hufbauer, G.C. (1966), Synthetic Materials and the Theory of International Trade, London,Google Scholar
Hufbauer, G.C. and Schott, J.J. (1993), NAFTA—An Assessment Institute for International Economics, Washington, D.C.Google Scholar
International Monetary Fund (IMF)(1996), Balance of Payments Statistics Yearbook, Washington, D.C.Google Scholar
Joekes, S. (1982), ‘The multifibre arrangement and outward processing: the case of Morocco and Tunisia’, in: Stevens, C. and Themat, J.V. (eds.), EEC and the Third World: A Survey, pp. 102–112, London, Sydney: Hodder & Stoughton.Google Scholar
Klodt, H. and Maurer, R. (1996), ‘Internationale direktinvestitionen: determinanten und konsequenzen für den standort Deutschland’, Institute of World Economics Discussion Paper no. 284, Kiel.Google Scholar
Knickerbocker, F.T. (1993), Oligopolistic Reaction and Multinational Enterprise, Harvard University, Graduate School of Business Administration, Boston.Google Scholar
Langhammer, R.J. (1992), ‘Die assoziierungsabkommen mit der CSFR, Polen und Ungarn: wegweisend oder abweisend?’, Institute of World Economics, Discussion Paper no. 182, Kiel.Google Scholar
Lansbury, M., Pain, N. and Smidkova, K. (1996), ‘Foreign direct investment in Central Europe since 1990: an econometric study’, National Institute Economic Review, no. 156, pp. 104–114.CrossRefGoogle Scholar
Lorz, J.O. (1993), ‘Direktinvestitionen des verarbeitenden gewerbes in industrieländern’, Die Weltwirtschaft 2, pp. 149–166.Google Scholar
Lowe, J.H. and Bargas, S.E. (1996), ‘Direct investment positions and historical-cost basis’, Survey of Current Business 76 (7), pp. 45–60.Google Scholar
Meyer, K.E. (1995), Business Operations of British and German Companies with the Economies in Transition: First Results of a Ouestionnaire Survey, London Business School, CIS-Middle Europe Centre, Discussion Paper series 19, London.Google Scholar
Nunnenkamp, P., Gundlach, E. and Agarwal, J.P. (1994), ‘Globalisation of production and markets’, Kieler Studien 262, Tübingen.Google Scholar
Organisation for Economic Co-operaton and Devopment (OECD) (1994), Trade and Investment: Transplants, Paris.Google Scholar
Organisation for Economic Co-operaton and Devopment (OECD)(var. issues), International Direct Investment Statistics Yearbook, Paris.Google Scholar
Piazolo, D. (1996), ‘Trade integration between Eastern and Western Europe’, Institute of World Economics, Working Paper no. 745, Kiel.Google Scholar
PlanEcon Report (1996) 36 (9-10): 36.CrossRefGoogle Scholar
Pomfret, R. (1986), Mediterranean Policy of the European Community, London.CrossRefGoogle Scholar
Statistisches Bundesamt (1995, 1996), Statistisches Jahrbuch für die Bundesrepublik Deutschland, Wiesbaden.Google Scholar
UN (1994), East-West Investment News, Economic Commission for Europe, Geneva.Google Scholar
United Nations Centre on Transnational Corporations (UNCTC) (1992), The Determinants of Foreign Direct Investment: A Survey of the Evidence, New York.Google Scholar
Unctad (1995), World Investment Report 1995: Transnational Corporations and Competitiveness, New York and Geneva.Google Scholar
Unctad (1996), World Investment Report 1996: Investment, Trade and International Policy Arrangements, New York and Geneva.CrossRefGoogle Scholar
Unctad (1996a), Trade and Development Report, 1996, Geneva.CrossRefGoogle Scholar
Unctad (1997), Sharing Asia's Dynamism: Asian Direct Investment in European Union (forthcoming).Google Scholar
Unctad (1997b), FDI Determinants and TNCs' Strategies: The Case of Brazil, Interim version, Geneva.Google Scholar
US Department of Commerce (USDOC)(1996), ‘US direct investment abroad: detail for historical-cost position and related capital and income flows, 1995’, Survey of Current Business 76 (9), pp. 98–128, Washington, D.C.Google Scholar
US Department of Labour (1996), International Comparison of Hourly Compensation Costs for Production Workers 1975-1995, Supplementary Tables for BLS Report 909, Washington, D.C.Google Scholar
Vernon, R. (1966), ‘International investment and international trade in product cycle’, Quarterly Journal of Economics 70 (2), pp. 190–207.CrossRefGoogle Scholar
Vernon, R. (1979), ‘The product cycle hypothesis in a new international environment’, Oxford Bulletin of Economics and Statistics 41 (4), pp. 255–267.CrossRefGoogle Scholar
Wang, Z-Q. and Swam, N.J. (1995), ‘The determinants of foreign direct investment in transforming economies: empirical evidence from Hungary and China’, Weltwirtschaftliches Archiv 131 (2), pp. 359–382.CrossRefGoogle Scholar
World Economic Forum (WEF)(1996), The Global Competitiveness Report 1996, Geneva.Google Scholar