Publisher:
Leverhulme Centre for Research on Globalisation and Economic Policy, University of Nottingham, Nottingham
Abstract:
Gravity modelling has been used extensively in analysing trade flows but less so for crossborder investment. Recent theoretical work provides an underpinning for applications to FDI. In this paper we estimate a gravity model to evaluate the potential for increased FDI for a sample of Eastern European countries, following accession to the EU. Preliminary results suggest limited potential in manufacturing but greater scope in services.
