The European Neighbourhood Policy and FDI: the Southern Dimension
The European Neighbourhood Policy and FDI: the Southern Dimension

Summary/Abstract: The launch of the ENP was accompanied by a significant increase in FDI inflows to MENA economies. This rendered the ENP’s supporters hail its relevance. However, it is questionable if the rise in FDI inflows to the MENA region over the period 2004-2013 can be attributed solely to the launch of the ENP. This paper demonstrates that, while over time the volume of FDI inflows to MENA countries increased, it should be attributed to three groups of factors, i.e. positive FDI trends in the world economy; actions by MENA countries aimed at reforming their economies and making them more FDI-friendly; development of economic cooperation with the EU member states as well as with other countries and/or regions. In this view, the onset of the EU-MENA cooperation, the ENP framework included, constituted only one set of factors that influenced the volumes of FDI inflows to the MENA region over the period in question.

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