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Abstract ▼ AI-Helper

EU is enlarging geographically by the process of expansion and is intensifying the economic bloc by the formation of European Union and European Monetary Union. This situation increases the direct investment in the intra-EU members and changes the intra-EU flows. First, EU is formed by the economic ...

EU is enlarging geographically by the process of expansion and is intensifying the economic bloc by the formation of European Union and European Monetary Union. This situation increases the direct investment in the intra-EU members and changes the intra-EU flows. First, EU is formed by the economic geographical space of the North and the South with a differentiation of economic factors and the degree of economic development. The North played a leading role for an augmentation of the intra-EU direct investment after the formation of EU. Second, the manufacturing industry of the intra-EU direct investment by industry was increased remarkably. In the intra-EU direct investment flow by region and industry, the South made relatively an outflow of the service industry and an inflow of the manufacturing industry. But the North made an outflow of the manufacturing industry and an inflow of the service industry. Third, in the intra-EU direct investment flows by manufacturing industry, the North concentrated in the petro-chemistry, metal-machinery and agro-food industry, however, the South which have relatively weak competitiveness compared to the North tends to show balanced investment patterns in all industries.

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