EU Enlargement and Consequences for FDI Assisted Industrial Development

Transnational Corporations, Vol.18, Issue 2, 2009

22 Pages Posted: 28 Aug 2018

See all articles by Rajneesh Narula

Rajneesh Narula

International Business and Strategy, Henley Business School

Christian Bellak

WU, Vienna University of Economics and BA

Date Written: January 31, 2009

Abstract

Many of the new member states as well as candidate and accession countries of the EU are confident that membership will result in substantially increased inward foreign direct investment (FDI) in manufacturing. This paper discusses the policy issues and challenges that cohesion and accession countries face, applying lessons that by now have become mainstream in the parallel discussion of FDI-assisted development in the developing economies. We argue that globalisation has attenuated the benefits that accrue from EU membership for latecomers, and they must now compete for FDI not just with other European countries but also with non-EU emerging economies. We posit that they should not base their industrial development strategy on mere passive reliance of FDI flows without considering how to concatenate their industrial development and the nature of the MNE activities they attract.

Keywords: FDI, EU, transnational corporations, absorptive capacity, globalization, development, enlargement

Suggested Citation

Narula, Rajneesh and Bellak, Christian, EU Enlargement and Consequences for FDI Assisted Industrial Development (January 31, 2009). Transnational Corporations, Vol.18, Issue 2, 2009. Available at SSRN: https://ssrn.com/abstract=2785585

Rajneesh Narula (Contact Author)

International Business and Strategy, Henley Business School ( email )

University of Reading
Reading, UT Berkshire RG6 6UD
United Kingdom
+44 (0)118 378 5247 (Phone)

HOME PAGE: http://https://www.henley.ac.uk/people/person/professor-rajneesh-narula/

Christian Bellak

WU, Vienna University of Economics and BA ( email )

Welthandelsplatz 1
Vienna, Vienna 1020
Austria
00431313364505 (Phone)

HOME PAGE: http://https://www.wu.ac.at/u/bellak/

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