Union monétaire et ide. Quels sont les effets de l'euro ?

We empirically study the impact of monetary integration on foreign direct investment (fdi) using a theoretically grounded model. A single currency may induce more fdi since it reduces macroeconomic uncertainty and lowers transaction costs. We find that the Economic and Monetary Union (emu) plays an important role for stimulating fdi stocks and flows within the euro-zone. This result is robust to a variety of sensitivity tests related to the sample. Moreover, the size of the euro?s impact on fdi seems larger in peripheral countries compared to the central nations of the eurozone. Classification JEL : F15, F21, F33