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Economic Integration and Foreign Direct Investment: Review of Main Theoretical Concepts

Abstract

The objective of the article is to present key theoretical relationships between economic integration and FDI flows. The research method used is a comprehensive literature review. Most influential publications, including books, articles, working papers, etc. contributing to the subject were identified. The review consists of two essential parts: theory of FDI, and theoretical relationships between economic integration and FDI flows. Finally, the outlined publications were discussed and critiqued, including the empirical context, i.e. empirical verification of the presented links. In some areas the theoretical impact of integration on FDI is unclear, thus being an obstacle to making informed policy decisions. According to various theoretical concepts, economic integration should influence FDI flows mostly positively, due to e.g. reduced trade barriers and extended market sizes. A number of theoretical concepts support the positive impact of economic integration on FDI flows. Possible directions of future research include comparisons of blocs with members at different development level, and further development of FDI theories in order to account for integration effects.

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Category:
Articles
Type:
publikacja w in. zagranicznym czasopiśmie naukowym (tylko język obcy)
Published in:
Entrepreneurial Business and Economics Review no. 2, pages 79 - 89,
ISSN: 2353-883X
Title of issue:
FDI in Central Europe strony 79 - 89
Language:
English
Publication year:
2014
Bibliographic description:
Marszk A.. Economic Integration and Foreign Direct Investment: Review of Main Theoretical Concepts. Entrepreneurial Business and Economics Review, 2014, Vol. 2, nr. 3, s.79-89
Verified by:
Gdańsk University of Technology

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