The Impacts of Regional Economic Integration on the Determinants of Member Nations’ Foreign Direct Investments: The Case of European Union

The impacts of regional economic integration (REI) on member nations’ foreign direct investment (FDI) activities have been relatively neglected compared to the activities of nonmember nations in the integrated regions. As a result, the main purpose of this study is to analyze how the determinants of EU member nations’ inward and outward foreign direct investment have been changed over the progressing process of the EU. This study finds that ownership and/or internalization specific advantages are more important than location specific advantages are in attracting inward foreign direct investment (IFDI) into EU15, and in making outward foreign direct investment (OFDI) by EU15 according to the process of the EU.