Introducing this volume of the EIB Papers and linking the various contributions, this paper emphasises that the internationalisation of production in Europe, which creates cross-border production networks, is an increasingly important element of globalisation, has been spreading to new EU...

This paper describes long-term trends in international production, i.e. the production of goods and services that is under the governance of transnational corporations - either through foreign direct investment (FDI) or non-equity arrangements. It recounts the rapid growth in international...

Focussing on Europe, this paper starts with reviewing the main determinants of foreign direct investment (FDI); a key observation is that economic policies and non-policy factors contribute equally to the direction of FDI flows. The paper then examines the growth-FDI nexus: while a strong...

Presenting a case study of FDI in Hungary, this paper first reviews the characteristics of FDI in Hungary since the outset of transition. It then examines the determinants of FDI in Hungary, finding that early and comprehensive privatisation and the creation of a generally business-friendly...