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The Impact Of Global Geopolitical Turmoil And Of Domestic Structural Weaknesses On Germany'S Investment Attractiveness

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  • Ana-Cristina Bâlgăr

Abstract

The intensification of global geopolitical tensions in recent years, coupled with the increased volatility of energy prices on European markets following the outbreak of the Russian-Ukrainian conflict, has highlighted and exacerbated the failure of the German model of economic development and a number of latent structural dysfunctions of the federal economy. Since each of these shortcomings has a profound negative impact on Germany's ability to attract foreign direct investment (FDI), we aim in this article to identify the concrete ways in which they have contributed to the deterioration of the country's investment climate. At the same time, in a separate section, we analyse recent trends in FDI inflows and stocks in the German economy

Suggested Citation

  • Ana-Cristina Bâlgăr, 2024. "The Impact Of Global Geopolitical Turmoil And Of Domestic Structural Weaknesses On Germany'S Investment Attractiveness," Euroinfo, Institute for World Economy, Romanian Academy, vol. 8(1), pages 99-114, July.
    • Handle: RePEc:iem:eurinf:v:8:y:2024:i:1:p:99-114
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    Keywords

    Germany; global geopolitical climate; structural challenges; inward foreign direct investment (FDI); investment attractiveness;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General

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