Title: Determinants of inward FDI in manufacturing: a cross-sectoral analysis for Greece

Authors: Klimis Vogiatzoglou; Theodore Tsekeris

Addresses: Faculty of Economics and Commerce, Hoa Sen University, No. 8, Nguyen Van Trang str., Ho Chi Minh City, Vietnam ' Centre of Planning and Economic Research (KEPE), 11 Amerikis, 106 72 Athens, Greece

Abstract: This paper examines the sectoral patterns and determinants of inward foreign direct investment (FDI) in Greek manufacturing. The panel-econometric analysis across manufacturing sectors reveals that, in contrast with low labour costs, a sector's size, labour productivity, scale economies and R&D intensity do significantly affect the attraction of FDI across manufacturing industries. Additionally, the empirical findings imply that policy measures which strengthen the natural resources-based advantages, promote industrial clusters and export processing zones, as well as upgrade the export-oriented logistics and outsourcing activities, would be expected to raise the inflow of manufacturing FDI in the country.

Keywords: foreign direct investment; FDI location; investment motives; industry-level analysis; manufacturing industry; outsourcing intensity; industrial policy; Greece; panel data; inward FDI; labour costs; industry size; labour productivity; scale economies; R&D intensity; research and development; natural resources; industrial clusters; export processing zones; export-oriented logistics.

DOI: 10.1504/IJEBR.2016.077026

International Journal of Economics and Business Research, 2016 Vol.11 No.4, pp.347 - 365

Received: 08 Sep 2015
Accepted: 05 Mar 2016
Published online: 17 Jun 2016 *

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