Locational Tournaments in the Context of the EU Competitive Environment

1. Front Matter

   Pages I-XXI

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2. Introduction

   1. Context of the Research

      Pages 1-6

   2. Objective and Structure of the Study

      Pages 7-14

3. Theoretical Framework

   1. Front Matter

      Pages 15-16

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   2. Introduction

      Pages 15-16

   3. Theories of Foreign Direct Investment

      Pages 17-43

   4. Locational Competition and Government Intervention

      Pages 44-59

   5. The New Institutional Economics Theory

      Pages 60-88

4. Governance of Foreign Direct Investment Policy Competition in Europe

   1. Front Matter

      Pages 89-90

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   2. European FDI Competition in Perspective

      Pages 91-101

   3. The Institutional Environment for Policy Competition in Europe

      Pages 102-119

   4. Governance Models for Investment Promotion in Europe

      Pages 120-137

5. Harnessing the Power of FDI Competition: An EU Policy Agenda

   1. Front Matter

      Pages 138-138

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   2. Evaluating the Overall Effectiveness of FDI Competition

      Pages 139-151

   3. Reviewing the EU Approach to Regulating FDI Policy Competition

      Pages 152-163

   4. Regional Integration and FDI Competition

      Pages 164-186

   5. Institutional Issues and Policy Implications

      Pages 187-199

6. Political Economy Aspects of FDI Policy Competition

   1. Front Matter

      Pages 200-201

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   2. International Regime Theory and Foreign Direct Investment

      Pages 202-211

   3. Institutional Choice and Cooperation in FDI Competition

      Pages 212-234

As part of the research undertaken by the Department of Economics at the European Business School, this book explores the role that institutions play in the process of economic competition between jurisdictions for mobile investment. These "locational tournaments" are perpetuated not simply by classical factor endowments of their respective locations, but also by government interventions that impact both market imperfections and FDI flows. The resulting rivalry between competing institutional arrangements, which has been termed institutional competition, lies at the very heart of the author's analysis. The context for his research is provided by the global forces of trade and foreign direct investment that have expanded the scope for international production due to widespread liberalization of trade and capital flows, continuing regional integration, rapid technological innovations, and the resulting decrease in cross-border transaction costs. Foreign direct investment has been markedly affected by these developments. Countries depend now more heavily on foreign direct investment as a major portion of international capital flows, giving even smaller countries a greater potential and determination to compete for FDI. As a result, not only have attitudes towards FDI dramatically changed over the past decade, but so have the scope and intensity of the "'beauty contests" associated with it.

• Ausländische Direktinvestitionen
• Europäischer Wettbewerb
• Internationale Wirtschaftspolitik
• Neue Institutionenökonomik
• Standortwettbewerb
• Wirtschaftsförderung
• political economy

Dr. Stephan J. Dreyhaupt promovierte bei Prof. Dr. Rolf Caspers am Lehrstuhl für Weltwirtschaft und Internationales Management der European Business School, Schloß Reichartshausen in Oestrich-Winkel. Er ist als Head, Investment Information Services für MIGA, The World Bank Group, tätig.

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