| Foreword | 8 |
---|
| Acknowledgements | 10 |
---|
| Table of Contents | 14 |
---|
| Summary of Figures | 18 |
---|
| Summary of Tables | 19 |
---|
| Abbreviations | 20 |
---|
| I Introduction | 21 |
---|
| 1 Context of the Research | 21 |
| 2 Objective and Structure of the Study | 27 |
| 2.1 Definitions and Conceptual Themes | 27 |
| 2.2 Research Objectives and Design | 29 |
| II Theoretical Framework | 35 |
---|
| 1 Introduction | 35 |
| 2 Theories of Foreign Direct Investment | 37 |
| 2.1 Definition of Foreign Direct Investment | 37 |
| 2.2 Origins of Foreign Direct Investment Theory | 40 |
| 2.3 The Elusive | 40 |
| 2.3 The Elusive | 40 |
---|
| 42 | 40 |
---|
| 2.4 The | 40 |
| 2.4 The | 40 |
---|
| 57 | 40 |
---|
| 3 Locational Competition and Government Intervention | 64 |
| 3.1 The (Neo-) Classical Approach to Locational Competition | 64 |
| 3.2 The Neoclassical Model Revisited | 66 |
| 3.3 An Expanded Model of FDI Policy Competition between Governments | 70 |
| 4 The New Institutional Economics Theory | 80 |
| 4.1 Main Characteristics of the New Institutional Economics | 81 |
| 4.2 The Economics of Institutions | 84 |
| 4.3 New Institutional Economics Analysis of Foreign Direct Investment | 95 |
| Ill Governance of Foreign Direct Investment Policy Competition in Europe | 109 |
---|
| 1 European FDI Competition in Perspective | 111 |
| 1.1 Foreign Direct Investment in Europe | 111 |
| 1.2 EU Integration and the Context of Global FDI Competition | 117 |
| 2 The Institutional Environment for Policy Competition in Europe | 122 |
| 2.1 Competition between National Governments | 122 |
| 2.2 The Role of the European Commission | 127 |
| 2.3 Policy Instruments for FDI Competition in Europe | 131 |
| 3 Governance Models for Investment Promotion in Europe | 140 |
| 3.1 Objective and Institutions | 140 |
| 3.2 The Principal-Agent Relationship in Investment Promotion | 141 |
| 3.3 Different Institutional Approaches to Foreign Direct Investment Promotion | 143 |
| IV Harnessing the Power of FDI Competition: An EU Policy Agenda | 158 |
---|
| 1 Evaluating the Overall Effectiveness of FDI Competition | 159 |
| 1.2 Negative-Sum Game Hypothesis | 162 |
| 1.3 Are Countries Better Off Competing? | 164 |
| 2 Reviewing the EU Approach to Regulating FDI Policy Competition | 172 |
| 2.1 Impact of European Commission Policies on FDI Competition | 172 |
| 2.2 Main Weaknesses in the Current EU Approach to Practice | 177 |
| 3 Regional Integration and FDI Competition | 184 |
| 3.1 The Challenges of EU Enlargement | 184 |
| 3.2 System Competition versus Forced Harmonization | 188 |
| 3.3 Empirical Impressions: The Impact of FDI Policy Harmonization in the EU | 195 |
| 4 Institutional Issues and Policy Implications | 207 |
| 4.1 Reforming the Existing Framework of FDI Competition | 207 |
| 4.2 Maintaining Global Competitiveness | 214 |
| V Political Economy Aspects of FDI Policy Competition | 220 |
---|
| 1 International Regime Theory and Foreign Direct Investment | 222 |
| 1.1 Is FDI Policy Competition a Regime Issue? | 222 |
| 1.2 Diverging Views on International Regime Theory | 225 |
| 2 Institutional Choice and Cooperation in FDI Competition | 232 |
| 2.1 Increasing Transparency in Locational Competition | 232 |
| 2.2 Reaching Cooperative Investment Agreements | 234 |
| 2.3 Binding Multilateral Rules for Investment | 243 |
| 3 Is the EU Competition Framework a Model for International FDI Regimes? | 255 |
| 3.1 Rules of the FDI Game — How Should They Be Established? | 255 |
| 3.2 Rules of the FDI Game — How Should They Be Governed? | 261 |
| 3.3 Lessons Learned from the EU Experience | 267 |
| VI Conclusions | 271 |
---|
| Annex | 275 |
---|
| Bibliography | 303 |