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FDI in the Mediterranean Region: a Comparison with CEE Experience

Author

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  • Alessandrini, Sergio
  • Resmini, Laura

Abstract

The research paper was designed to identify the factors that would explain the patterns and the determinants of FDI in the Mediterranean region during 1990-1997. The most important fact characterising this period has been the extension of the Association Agreements to most of the countries belonging to the region. It was thought that these agreements would have given a new boost to foreign direct investments into the region, penalised by the emerging of the countries of Central and Eastern Europe as preferential partners of the EU. According to the empirical analyses, natural resource endowment still represents an important factor of attraction of FDI, relative to Central and Eastern Europe. Moreover, foreign investors have been attracted in the MED region by market considerations, concerning not only the single national markets, but also the regional one. This effect is stronger than in Central and Eastern Europe, suggesting that a deeper regional integration may sound attractive to foreign enterprises, mainly if the parent firm is located in the United States. Trade with major investors countries also matters, even though the derived effect appears somewhat smaller than found in Central Europe. This implies that an improvement in trade relationships with the EU – as envisaged by the Association Agreements – would have a positive impact on FDI patterns.

Suggested Citation

  • Alessandrini, Sergio & Resmini, Laura, 2000. "FDI in the Mediterranean Region: a Comparison with CEE Experience," MPRA Paper 26103, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26103
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    References listed on IDEAS

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    Cited by:

    1. Heather D. Gibson & Thomas Vlassopoulo, 2007. "Capital Folws, capital account liberalisation and the southern Mediterranean countries," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 60(241), pages 137-165.
    2. Sadni Jallab, Mustapha & Abdelmalki, Lahsen, 2007. "The Free Trade Agreement Between the United States and Morocco: The Importance of a Gradual and Assymetric Agreement," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 852-887.
    3. Bassem Kamar & Damyana Bakardzhieva, 2002. "The Reforms Needed to Attract More FDI in Egypt: Lessons from the CEEC Experience," Working Papers 0240, Economic Research Forum, revised 26 Dec 2002.
    4. Heather D. Gibson & Nicholas T. Tsaveas & Thomas Vlassopoulos, 2006. "Capital Flows, Capital Account Liberalisation and the Mediterranean Countries," Working Papers 33, Bank of Greece.

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    More about this item

    Keywords

    Foreign Direct Investments; Association Agreements; Mediterranean; Central and Eastern Europe;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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