Research On The Influencing Factors Of FDI In EU Member Countries

The research background of this paper is based on the existing international direct investment theory and the empirical research of foreign direct investment.Taking the 28 member states of the European Union as the research object,the empirical analysis is based on economic factors,institutional factors and accounting standards.The method aims to study the influencing factors of foreign direct investment inflows in the 28 member states of the European Union,and through empirical tests.the following main conclusions are drawn:(1)The factors that have a significant positive effect on the influx of FDI inflows in EU member countries are GDP growth rate and natural resource endowment,which indicates that for a member state of the EU,the higher GDP grows rate and the richer the natural resources,the more FDI will flow into the country.(2)Inflation rate and labor wage rate have significant negative inhibitory effect on EU member countries' attraction of FDI inflow,which indicates that if a EU member has higher inflation rate and labor wage rate,the less FDI will flow into the country..The content of this paper is divided into five parts:The first part:the introduction,including introduces of the main content,significance of research and structure of the article;the second part:the status quo of the world and EU FDI,through data and chart form for 2005-2017 The situation of FDI inflows in the world and EU in the past 13 years is briefly explained and analyzed.The third part:related theoretical review and empirical literature review,aiming to understand the determinants affecting FDI through relevant theories and empirical literature,and decide on subsequent evidence.The data of relevant factors used in the analysis;the fourth part:analysis of the influencing factors of FDI,mainly from three aspects of economic factors,institutional factors and accounting standards,to explain the impact of each specific factor on FDI;the fifth part:FDI The empirical analysis of the determinants uses the econometric method to analyze the collected data and draw conclusions based on relevant theories;the sixth part:based on the results of empirical analysis,it proposes policy recommendations for China to attract FDI inflows.The innovations of this paper are:(1)Innovation of research objects.Most of the existing empirical studies on the determinants of foreign direct investment focus on developing countries or transition economies,and there is little research in developed countries.The research in this paper makes up for this gap,perfects the theoretical system of foreign direct investment,and enhances the ability to explain determ inants.(2)Innovation in research methods.Starting from the traditional economic factors and institutional factors,the innovative accounting standards are added to analyze the determinants affecting FDI inflows,which provides a broader reference for the study of determinants of foreign direct investment.The shortcoming of this paper is that although the comprehensive analysis of the determinants,the final conclusions do not show that institutional factors and accounting standards have a significant impact on EU IFRS inflows,which may be due to the research methods or data processing of this paper.There are still some shortcomings,and I hope more scholars can conduct in-depth discussions on this issue.