Evaluation of attractiveness of the EU member states for foreign direct investment

Abstract

The world is increasingly being affected by globalisation, and investment is being affected by this continuous process. Investment is an important determinant of a country’s growth, its micro- and macroeconomic development, and the overall economic well-being. Attractiveness for investment is an indicator that reveals accessibility and competitiveness of a region with all its material and non-material resources compared to other regions with similar characteristics. Based on systematic and comparative literature analysis, this article reviews the concepts of foreign direct investment (FDI) and FDI attractiveness, and examines FDI evaluation methods and models. The major purpose of the article is to evaluate attractiveness of the EU member states for FDI. Research methods: synthesis and comparison of the concepts and methods available in scientific literature, secondary data analysis, statistical data processing, multicriteria evaluation methods. Results of research: developed model for evaluating the attractiveness of particular countries for FDI comprises three groups of determinants (baseline determinants, political and legal determinants, price and quality determinants), by empirical studies revealed that the countries classified by the United Nations as a group of Western Europe and other countries are most attractive for FDI.