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A Fresh Assessment of the Depth of the “Euro Effect" on US FDI

Author

Listed:
  • Camarero, Mariam

    (University Jaume I and INTECO, Department of Economics)

  • Moliner, Sergi

    (University of Valencia and INTECO, Department of Economic)

  • Tamarit, Cecilio

    (University of Valencia and INTECO, Department of Applied Economics II)

Abstract

This paper analyzes how European monetary integration has affected US outward FDI. It finds that at a worldwide level, the Single Market had a larger impact on US FDI than the euro. However, the effect of the euro is also sizeable, ranging between 15% and 64%.

Suggested Citation

  • Camarero, Mariam & Moliner, Sergi & Tamarit, Cecilio, 2024. "A Fresh Assessment of the Depth of the “Euro Effect" on US FDI," Single Market Economics Papers WP2024/18, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team.
    • Handle: RePEc:bda:wpsmep:wp2024/18
    DOI: 10.2873/326776
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    More about this item

    Keywords

    FDI determinants; US; European Union; BMA; PPML; G-PPML;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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