Four main conclusions stand out from the analysis. First, we conclude that the motivations behind foreign direct investment (FDI) raise issues of principle for competition policy but are too general to warrant attention. Second, we find that the pattern of investment across industries in the EC...

This paper analyzes three policy issues associated with foreign direct investment flows in the European Community. First, we find that recent FDI flows raise concerns that the technology of EC firms might be sourced by foreign competitors. Second, we analyze appropriate institutions to settle...