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The FDI premium from EU membership

Bruno, Randolph, Campos, Nauro F., Estrin, Saul, Tian, Meng, (2016),  “The FDI premium from EU membership”, Voxeu, 5 Μay

The current Brexit debate has highlighted questions about the benefits and costs of EU membership. This column considers the effect of membership on foreign direct investment (FDI). Using several measures, EU membership is found to increase FDI inflows by 14–38% between 1985 and 2013. These results support arguments for economic integration, and indicate that, like international trade, FDI is a key channel through which payoffs are delivered.

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