IDEAS home Printed from https://ideas.repec.org/a/bla/glopol/v14y2023is3p40-53.html
   My bibliography  Save this article

Naïve no more: Foreign direct investment screening in the European Union

Author

Listed:
  • Sarah Bauerle Danzman
  • Sophie Meunier

Abstract

This paper asks what explains the creation and comparative features of national Investment Screening Mechanisms (ISMs) in Europe. After providing a brief history and definition of ISMs, we provide descriptive patterns about the similarities and differences in the investment screening features of national ISMs in EU member states. We then explain differences in national screening policies by focusing on the role of public debt, Chinese investment, R&D expenditures and various geographic groupings. Finally, we make three policy arguments about the rise of ISMs in Europe: (1) ISMs have not been designed as protectionist instruments, (2) the politics of inward investment screening reflects a shift from economic to security logic in addressing the fundamental tension between the benefits and vulnerabilities of open markets and (3) the EU can use the ‘commercialisation’ of security to extend its own competence in the security sphere. We conclude by considering how the rapid expansion of investment screening in Europe could affect economic openness, as well as the role of the EU as a global actor.

Suggested Citation

  • Sarah Bauerle Danzman & Sophie Meunier, 2023. "Naïve no more: Foreign direct investment screening in the European Union," Global Policy, London School of Economics and Political Science, vol. 14(S3), pages 40-53, July.
    • Handle: RePEc:bla:glopol:v:14:y:2023:i:s3:p:40-53
    DOI: 10.1111/1758-5899.13215
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1758-5899.13215
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1758-5899.13215?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sophie Meunier & Kalypso Nicolaidis, 2019. "The Geopoliticization of European Trade and Investment Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 57(S1), pages 103-113, September.
    2. Anastasia Ufimtseva, 2020. "The Rise of Foreign Direct Investment Regulation in Investment‐recipient Countries," Global Policy, London School of Economics and Political Science, vol. 11(2), pages 222-232, April.
    3. Chilton, Adam S. & Milner, Helen V. & Tingley, Dustin, 2020. "Reciprocity and Public Opposition to Foreign Direct Investment," British Journal of Political Science, Cambridge University Press, vol. 50(1), pages 129-153, January.
    4. Geir Hågen Karlsen, 2019. "Divide and rule: ten lessons about Russian political influence activities in Europe," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-14, December.
    5. Ruggie, John Gerard, 1982. "International regimes, transactions, and change: embedded liberalism in the postwar economic order," International Organization, Cambridge University Press, vol. 36(2), pages 379-415, April.
    6. Keyan Lai, 2021. "National security and FDI policy ambiguity: A commentary," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 496-505, December.
    7. Zenobia T. Chan & Sophie Meunier, 2022. "Behind the screen: Understanding national support for a foreign investment screening mechanism in the European Union," The Review of International Organizations, Springer, vol. 17(3), pages 513-541, July.
    8. Sophie Meunier, 2017. "Integration by Stealth: How the European Union Gained Competence over Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 55(3), pages 593-610, May.
    9. Matthew J. Baltz, 2017. "Institutionalizing neoliberalism: CFIUS and the governance of inward foreign direct investment in the United States since 1975," Review of International Political Economy, Taylor & Francis Journals, vol. 24(5), pages 859-880, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierre Haroche, 2024. "Geoeconomic Power Europe: When Global Power Competition Drives EU Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 62(4), pages 938-954, July.
    2. Guri Rosén & Sophie Meunier, 2023. "Economic Security and the Politics of Trade and Investment Policy in Europe," Politics and Governance, Cogitatio Press, vol. 11(4), pages 122-128.
    3. Christian Freudlsperger & Sophie Meunier, 2024. "When Foreign Policy Becomes Trade Policy: The EU's Anti‐Coercion Instrument," Journal of Common Market Studies, Wiley Blackwell, vol. 62(4), pages 1063-1079, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zenobia T. Chan & Sophie Meunier, 2022. "Behind the screen: Understanding national support for a foreign investment screening mechanism in the European Union," The Review of International Organizations, Springer, vol. 17(3), pages 513-541, July.
    2. Sarah Bauerle Danzman & Sophie Meunier, 2024. "The EU's Geoeconomic Turn: From Policy Laggard to Institutional Innovator," Journal of Common Market Studies, Wiley Blackwell, vol. 62(4), pages 1097-1115, July.
    3. Jing Li & Daniel Shapiro & Anastasia Ufimtseva, 2024. "Regulating inbound foreign direct investment in a world of hegemonic rivalry: the evolution and diffusion of US policy," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 147-165, June.
    4. Pierre Haroche, 2024. "Geoeconomic Power Europe: When Global Power Competition Drives EU Integration," Journal of Common Market Studies, Wiley Blackwell, vol. 62(4), pages 938-954, July.
    5. Antonio Calcara & Arlo Poletti, 2023. "Varieties of Anti‐Globalism: The Italian Government’s Evolving Stance on the EU’s Investment Screening Mechanism," Politics and Governance, Cogitatio Press, vol. 11(4), pages 177-187.
    6. Bart-Jaap Verbeek, 2022. "Embedded Neoliberalism and the Legitimacy of the Post-Lisbon European Union Investment Policy," Politics and Governance, Cogitatio Press, vol. 10(3), pages 110-120.
    7. L. Johan Eliasson & Patricia Garcia‐Duran, 2023. "New is old? The EU's Open, Sustainable and Assertive Trade Policy," Global Policy, London School of Economics and Political Science, vol. 14(S3), pages 9-18, July.
    8. Christian Freudlsperger & Sophie Meunier, 2024. "When Foreign Policy Becomes Trade Policy: The EU's Anti‐Coercion Instrument," Journal of Common Market Studies, Wiley Blackwell, vol. 62(4), pages 1063-1079, July.
    9. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    10. Vigvári, Gábor, 2022. "Transzformáció és a populizmus a visegrádi országokban [Transformation and populism in the V4 countries]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 339-366.
    11. Cohen, Joseph N., 2008. "Managing the Faustian bargain: monetary autonomy in the pursuit of development in Eastern Europe and Latin America," MPRA Paper 22435, University Library of Munich, Germany.
    12. Álvaro Santos, 2023. "International Investment Law in the Shadow of Populism: Between Redomestication and Liberalism Re‐Embedded," Politics and Governance, Cogitatio Press, vol. 11(1), pages 203-213.
    13. Kono Daniel Y., 2011. "Insuring Free Trade: Unemployment Insurance and Trade Policy," Business and Politics, De Gruyter, vol. 13(3), pages 1-31, October.
    14. Dylan Bugden & Jesse Brazil, 2024. "The role of geostrategic interests in motivating public support for foreign climate aid," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 14(4), pages 803-813, December.
    15. Robert Basedow, 2021. "The EU's International Investment Policy ten years on: the Policy‐Making Implications of Unintended Competence Transfers," Journal of Common Market Studies, Wiley Blackwell, vol. 59(3), pages 643-660, May.
    16. Adelle BLACKETT & Colleen SHEPPARD, 2003. "Collective bargaining and equality: Making connections," International Labour Review, International Labour Organization, vol. 142(4), pages 419-457, December.
    17. Liesbet Hooghe & Tobias Lenz & Gary Marks, 2019. "Contested world order: The delegitimation of international governance," The Review of International Organizations, Springer, vol. 14(4), pages 731-743, December.
    18. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    19. Vrânceanu, Alina & Dinas, Elias & Heidland, Tobias & Ruhs, Martin, 2023. "The European refugee crisis and public support for the externalisation of migration management," Open Access Publications from Kiel Institute for the World Economy 279441, Kiel Institute for the World Economy (IfW Kiel).
    20. Yi-Chi Hsiao & Hsueh-Liang Wu & Chun-Ping Yeh, 2023. "An investigation of the bridging interface strategies used by Chinese MNE when undertaking FDI to Taiwan," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1485-1512, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:glopol:v:14:y:2023:i:s3:p:40-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.