Inward FDI in Germany and its policy context

Jost, Thomas

With a stable economic and political system, open capital markets, the largest domestic market in Europe, and European Union (EU) membership, Germany has attracted competitive and export-oriented multinational enterprises (MNEs) since the 1960s. In the 1990s—after German unification and the opening up of Eastern Europe—inward foreign direct investment (IFDI) grew more slowly than expected despite the increased market potential. In recent years, the German economy strengthened and the wage and cost gaps against its main competitors narrowed, contributing to higher IFDI. With the financial and economic crises, German IFDI declined considerably in 2008 but started to rise again in 2009. At the end of 2008, Germany ranked among the top four developed countries as host for IFDI. Germany's open investment regime was tightened in 2009, in reaction to the emergence of sovereign wealth funds (SWFs).

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More About This Work

Academic Units
Vale Columbia Center on Sustainable International Investment
Vale Columbia Center on Sustainable International Investment
Columbia FDI Profiles
Published Here
October 15, 2010


July 26, 2010.