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Direct Investment in a Small Open Economy: The Case of Greece

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Abstract

This paper examines the main factors that affect the strategic decision of the multinational enterprises to enter the Greek market. It answers the question whether the foreign firms under analysis intended to exploit the comparative advantage of the country or the monopolistic or oligopolistic advantage provided by the structure of the domestic market. The first part of the paper discusses the trend of FDI in Greece in the post war era and analyses the motivation of multinationals to establish affiliates in Greece in the same period. The second part tests the main determinants for the FDI decision through a single equation model using cross section data.

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  • Mardas , Dimitri & Varsakelis , Nikos, 1996. "Direct Investment in a Small Open Economy: The Case of Greece," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 49(3), pages 401-415.
    • Handle: RePEc:ris:ecoint:0362
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    Cited by:

    1. Dimitri Mardas & George Papachristou & Nikos Varsakelis, 2008. "Public Procurement and Foreign Direct Investment Across France, Germany, Italy and the UK," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(2), pages 183-193, June.
    2. Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2009. "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 691-704, August.
    3. Ahmad Seyf, 2001. "Can Globalisation and Global Localisation Explain Foreign Direct Investment? Japanese Firms in Europe," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 137-153.

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