The effect of restrictive measures on cross‐border investment in the European Union

Gregori, Wildmer Daniel; Michela, Nardo

doi:10.1111/twec.13104

Cited by 10 publications

(20 citation statements)

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“…Moreover, the common border has negative and significant impacts on FDI inflows, which is contrary to the theory. This negative and significant sign is due to the substitutability between trade and FDI, especially between countries that share the same border (Gregori and Nardo, 2021) Alfieri, 2020). Regional trade agreements (RTA) have significant negative effects on FDI in advanced countries, while there are significant positive impacts on cross-border FDI among advanced and emerging countries.…”

Section: Baseline Resultsmentioning

confidence: 99%

“…The second test examines the effects of restrictive measures on FDI between advanced and BRICS countries 32 considered as large emerging countries and between OECD and emerging countries excluding BRICS. This test shows whether the effects are different among emerging countries.…”

Section: Baseline Resultsmentioning

confidence: 99%

“…31 Gregori and Nardo (2021) observed a stagnation of inward M&As in EU countries during 2011-14. 32 Brazil, Russia, India, China and South Africa.…”

Section: Baseline Resultsmentioning

confidence: 99%

“…Using gravity models and the recent version of the OECD FDI restrictiveness index, he finds a significant negative impact of restrictions on FDI stocks after controlling for various political and structural determinants of bilateral FDI. Recent studies examining the impacts of restrictive measures on FDI through the OECD FDI Regulatory Restrictiveness Index are those by Mistura and Roulet (2019) and Gregori and Nardo (2021). They differ from those mentioned above because they examine the effects of restrictions on aggregate FDI, sectoral FDI, and M&A.…”

Section: Literature Reviewmentioning

confidence: 99%

“…It considers the latest international guidelines for compiling foreign direct investment (FDI) statistics. 1 Second, Mistura and Roulet (2019); Gregori and Nardo (2021) study the effects of different types of restrictive measures on FDI. Our model examines in more details the impact of global and sectoral restrictive measures on cross-border FDI.…”

Section: Introductionmentioning

confidence: 99%

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The effects of restrictive measures on cross‐border investment: Evidence from OECD and emerging countries

Zongo

2022

World Economy

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This paper investigates the effects of global and sectoral restrictive measures on cross-border FDI among 49 advanced and emerging countries. We use a gravity model with panel data from 2010 to 2019 and the FDI Restrictiveness Index of the OECD that quantifies the level of restriction in FDI. Our results suggest that global restrictive measures do not significantly affect cross-border FDI in OECD countries, while restrictions in the service sector have negative and significant effects on FDI. Moreover, the overall restrictive measures and those in the service sector negatively impact inward FDI among OECD and big emerging countries. In addition, restrictions in the services sector impede inward FDI in African countries. Interestingly, restrictions in the secondary sector boost FDI between advanced and African countries, with larger effects for inward investments in African countries. The analysis of disaggregated sectoral restrictive measures shows that restrictions in business and other financial services are negatively associated with intra-OECD FDI, while restrictions in the banking sector have a significant positive impact on FDI. We also find that restrictions in the manufacturing sector have restrictive impacts on inwrad FDI in big emerging countries, and those in the mining, quarrying, and oil extraction sector hinder inward FDI in African countries. Reforms to liberalize sectoral restrictions by country have positive effects on FDI, but deregulation of the services sector has beneficial effects on inward FDI in all countries.

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Section: Baseline Resultsmentioning

confidence: 99%

Section: Baseline Resultsmentioning

confidence: 99%

“…31 Gregori and Nardo (2021) observed a stagnation of inward M&As in EU countries during 2011-14. 32 Brazil, Russia, India, China and South Africa.…”

Section: Baseline Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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