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Cross border investment flows


The key question in this area focuses on EU participation to international production, as reflected by Foreign Direct Investments (FDIs). These include outward FDIs (acquisition of foreign assets by EU firms) and inward FDIs (acquisition of assets by foreign firms).
Aspects to be considered in order to assess the impacts of policies on this area include:

  • Overall foreign direct investment position of EU economies vis a vis  non-member countries
  • Distribution of FDIs by macrosectors (primary manufacturing and service activities)
  • Distribution of FDIs by type of technology (traditional vs. scale intensive or high technology activities)
  • Distribution of FDIs by environmental sensitiveness
  • Geographical distribution of FDIs

The legal framework can affect the FDIs by making markets more or less attractive to foreign investors. Public investments in infrastructures and in the creation of “free trade zones” as well as effective exchange rate policy are examples of policies enhancing in-ward foreign direct investments.
This text is for information only and is not designed to interpret or replace any reference documents.

Guiding Question

Does it provoke cross-border investment flows (including relocation of economic activity?

Relevant policies

Regarding this Guiding Question, which are the most important EU policies and strategies? For EU Impact Area Database: For an overview of most important EU policies and strategies, you can consult or

Contact  or

Web Resources

Further sources of data

Please link to further sources of data, e.g. important reports, annual reports etc.

Further sources of information

European Commission: DG Trade

WTO: Trade and Investment

Eurostat indicators

  • Market Integration: Foreign Direct Investment Intensity
  • Business Investment

available under or or

Other official indicators

Publications and applications

Content for this term