This paper studies the effect of the euro introduction on international FDI flows. Using country-pair data on 35 OECD … the euro on capital reallocation. In general, the euro exhibits no significant impact on FDI. However, the effect becomes … membership fosters FDI flows much more than the euro, increasing FDI flows by 55 to 166 percent. Among other FDI determinants …

applies a parametric difference-in-differences approach to assess the real effects of the introduction of the euro on … the initial problems were overcome within one year of the introduction of euro cash. …