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2017 | OriginalPaper | Chapter

Foreign Direct Investment and the Relationship Between the United Kingdom and the European Union

Authors : Randolph L. Bruno, Nauro F. Campos, Saul Estrin, Meng Tian

Published in: The Economics of UK-EU Relations

Publisher: Springer International Publishing

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Abstract

This paper investigates whether and to what extent foreign direct investment inflows into the United Kingdom are caused by its membership in the European Union (EU). It reports two main sets of econometric estimates: (a) synthetic counterfactual method with annual data for large sample of developing and developed countries over 1970–2014 and (b) gravity estimates using 34 OECD countries bilateral data for 1985–2013. The two sets of estimates strongly concur: EU membership increases FDI inflows by about 30%. This result is robust to changes in specification, country samples, time windows, and the use of different estimators (panel, PPML and Heckman).

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Metadata
Title
Foreign Direct Investment and the Relationship Between the United Kingdom and the European Union
Authors
Randolph L. Bruno
Nauro F. Campos
Saul Estrin
Meng Tian
Copyright Year
2017
Book
The Economics of UK-EU Relations

Print ISBN: 978-3-319-55494-5

Electronic ISBN: 978-3-319-55495-2

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-3-319-55495-2_6