Hub-and-spoke Europe - do rules of origin deprive central and eastern Europe of foreign direct investment? an assessment of outward investment from Italy
FP4 — Training and Mobility of Researchers
- Duration
- 1997-01-01 → 1998-12-31
- EU contribution
- —
- Participants
- 2
- Scheme
- RGI
Lines connect the coordinator with its partners. CORDIS does not always give exact coordinates for projects before 2014. These points are placed at city or country level.
Project objective
Rules of origin embodied in the Europe Agreements are alleged to favour the EU over the CEECs as a location for FDI. This so-called hub-and-spoke hypothesis argues that subsidiaries in an associated country are required, in exchange for free market access in the EU, to source intermediate inputs primarily from domestic sources or in the EU itself. By contrast, subsidiaries in the EU can source components from any associated country, thus achieving a more efficient trade structure. The project tests this hypothesis by analysing Italian outward investment in CEEC and elsewhere. It tries to refine the hypothesis by differentiating between investment motives, firm size, trade intensity and export direction of the subsidiary, and time horizon of the investment project. The results are expected to throw light on the absolute impact of rules-of-origin arrangements on the direction and volume of FDI flows, and their relative weight vis-a-vis other determinants of FDI.
Original text from CORDIS.
Participants
Links
Data: CORDIS, © European Union