Summary:
The present thesis is an effort to record and map the total of Greek outward FDI both in sectoral and spatial level over a period of ten years (2001-2010). It also explores the impact of various determinants on Greek outward FDI.
This thesis is based on primary firm level data collected from the Bank of Greece for all the Greek Multinational enterprises. The theoretical framework used is Dunning’s Eclectic Paradigm and the analysis moves to micro- and macro-level in parallel.
Chapter one consists of the clarification of the relevant concepts/theories and the literature review of the scientific field of the thesis.
The second chapter describes global FDI trends in recent decades.
The third chapter is the descriptive part of the thesis.
The fourth chapter includes the empirical investigation of the research questions and hypotheses, which is based on the econometric processing of the data of the Bank of Greece.
The final conclusion of this study is twofold. The Greek Outward FDIs are currently in a mature stage of internationalisation at least at regional level. Greek MNEs are basically large firms following the incentives of market seeking, strategic positioning and increasing of efficiency over their competitors. They present minimal similarities with the smaller MNEs of the 1990s, which continue to exist and invest in the Balkan countries, but their importance is rather minimal compared with the total population.
Regarding their motives, we distinguish two major trends. The first trend is the internationalisation under the criterion of tax avoidance and the search for less risky environment for capital investment. This trend is actually disinvestment and is mostly applied by financial institutions, which are often used as a vehicle for capital flight.
The other trend evolves alongside tax and is determined by growth strategy into new markets and the search for synergies, expertise and strategic partnerships. This trend is mainly followed by the heavy industries of manufacturing, and to a large extent by various trade branches.
Therefore, a key policy conclusion that can be drawn is the need for immediate reform of the tax framework of the Greek economy, and the institutional framework affecting investment in the country, such as administrative procedures and judicial speed. This will alleviate the disinvestment of capital from Greece, as evidenced in the financial sectors, while the "real multinational enterprises" will be able to improve the effectiveness of their parents and promote their internationalisation strategies further, with a positive impact on national economy.
Keywords:
Foreign Direct investment, Multinational, parent enterprises, Balkans
