TY  - JOUR
AU  - Blomstrom,Magnus
AU  - Kokko,Ari
TI  - Regional Integration and Foreign Direct Investment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6019
PY  - 1997
Y2  - April 1997
UR  - http://www.nber.org/papers/w6019
L1  - http://www.nber.org/papers/w6019.pdf
N1  - Author contact info:
Magnus Blomstrom
European Institute of Japanese Studies
Stockholm School of Economics
Post Office Box 6501, Sveavagen 65
S-113 83 Stockholm
 SWEDEN
Tel: 46-8-7369265
Fax: 46-8-313017
E-Mail: magnus.blomstrom@gmail.com

Ari Kokko
European Institute of Japanese Studies
Stockholm School of Economics
S-113 83 Stockholm, SWEDEN
E-Mail: ako.int@cbs.dk
AB  - This paper deals with the investment effects of regional integration agreements and discusses how such arrangements may affect inward and outward foreign direct investment flows in the integrating region.  After setting up a conceptual framework for the analysis, we provide three studies focusing on different kinds of regional integration: North-North integration (Canada joining CUSFTA), North-South integration (Mexico's accession to NAFTA), and South-South integration (MERCOSUR).  The main conclusion of the study is that the responses to an integration agreement largely depend on the environmental change brought about by the agreement and the locational advantages of the participating countries and industries.  Moreover, the findings suggest that the most positive impact on FDI has occurred when regional integration agreements have coincided with domestic liberalization and macroeconomic stabilization in the member countries.
ER  -