JOURNAL OF APPLIED BUSINESS AND ECONOMICS
U.S. FDI in the European Union: The Experience of the United Kingdom
Author(s): C. Richard Torrisi, Andrew Corbett
Citation: C. Richard Torrisi, Andrew Corbett, (2014) "U.S. FDI in the European Union: The Experience of the United Kingdom," Journal of Applied Business and Economics, Vol. 16, Iss. 1, pp. 57-65
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper examines the determinants of U.S. FDI in the United Kingdom from 1986 through 2010 using
stepwise and OLS multiple regression techniques. The paper confirms that Eurozone membership may
have significantly influenced U.S. investment decisions on where to enter or expand within the European
Union, by testing empirically our model for Belgium and comparing the regression outcomes. The results
confirm that U.S. FDI in the United Kingdom has been influenced by market growth, and statutory
corporate tax rates, but also that the country’s attractiveness to U.S. investors may have been negatively
impacted by the creation of the Eurozone. For Belgium, the results suggest that membership in the
Eurozone and E U enlargement had a positive impact on U S FDI.