Article

 

Motives for FDI in a small EMU member state: The case of Greece (p.11-42)

by

Bitzenis Aristidis , University of Macedonia, Thessaloniki, Greece

Tsitouras Antonis , Project Manager/Accountant/Economist MSc

Vlachos Vasileios A. , University of Macedonia, Thessaloniki, Greece

Keywords : multinational corporations, foreign direct investment, Greece

JEL classification : F21, F23

Abstract

A questionnaire survey covering MNCs that had invested in Greece during the period 1995-2003 is carried out in order to determine the motives for investing in Greece through a phase of increased expectations on foreign investment from hosting the 2004 Olympiad. The underlying assumption made is that the views of the local managers reflect the views of the mother company when deciding to invest. Although the findings represent the time that the investment took place, the influence of the conditions shaping the economic environment at the time the survey was carried out is also discussed. The findings indicate that the primary motives of foreign investors for the period 1995-2003 were those associated with market-seeking and support those of quantitative studies covering recent developments, leading to the conclusion that there is no progress made regarding the factors that enhance FDI attractiveness.