The World in Europe: Intra-European FDI

The World in Europe: Intra-European FDI

This stand-alone report analyses FDI flows across borders within Europe (intra-European FDI) with the purpose of comparing drivers and impacts of intra-European FDI with extra-European FDI. Based on the analysis, we draw the following main conclusions:

  • Intra-European FDI boosts productivity and stimulates convergence more than extra-European FDI

  • The internal market is a driver of intra-European FDI by lowering barriers to cross-border investments, increasing labour mobility and securing a level playing field between local and foreign firms

  • More can be done to remove obstacles to intra-European FDI, such as improving regulatory harmonisation in the service sector, increasing labour mobility, reducing country specific regulation, increasing capital mobility and strengthening the digital single market‍.

The report is part of a two-year research programme, The World in Europe, global FDI flows towards Europe. The programme casts new light on three topics related to the integration of Europe in the world economy:

  • Extra-European FDI towards Europe

  • Intra-European FDI

  • FDI by European SMEs

Key conclusions and recommendations related to each of these topics can be found in three stand-alone reports and a number of scientific reports that contain detailed methodological descriptions and results. The insights gained from the study are summarised in a synthesis report that cuts across the three topics.

Download synthesis report

Download scientific report - Collection of intra-European FDI

Download scientific report - Drivers and impacts of intra-European FDI

The study is commissioned by ESPON.

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The World in Europe: FDI by European SMEs

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The World in Europe: Extra-European FDI towards Europe