Direct Investment and European Integration (Chatham House Papers)

Direct investment is increasingly shaping the economic geography of Europe. Understanding the motives behind firms' investment decisions provides vital clues to the nature of the compeititon among firms and also among governments seeking to attract FDI. The authros document the rapid rise in intra-European investment in the 1980s and examine the various economic and policy variables that influence the pattern of investment in Europe by both European and non-European firms. They question both the impact of investment in helping to bring about policy convergence and the need for national governments to change policies in order to accommodate inward investors. The study also suggests policies that take into account the essential role that investment plays in European integration.