European FDI in Ireland and Iceland : Before and after the Financial Crisis

This paper analyses Foreign Direct Investment (FDI) investment in Ireland and Iceland from other European countries during two periods, i.e., the pre-financial crisis period of 2000–2007 and the financial crisis period of 2008–2010. The aim of this research is to determine what made the countries in...

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Bibliographic Details
Published in:Journal of Risk and Financial Management
Main Authors: Kristjánsdóttir, Helga, Óskarsdóttir, Stefanía
Other Authors: Faculty of Political Science, School of Business and Science
Format: Article in Journal/Newspaper
Language:English
Published: 2021
Subjects:
Bankahrunið 2008
Erlendar fjárfestingar
European Union (EU)
Foreign Direct Investment FDI
Trade Blocs
EFTA
International Monetary Fund (IMF)
European union
Foreign direct investment
International monetary fund
SDG 7 - Affordable and Clean Energy
SDG 10 - Reduced Inequalities
SDG 5 - Gender Equality
SDG 13 - Climate Action
SDG 6 - Clean Water and Sanitation
SDG 8 - Decent Work and Economic Growth
SDG 1 - No Poverty
SDG 9 - Industry
Innovation
and Infrastructure
Iceland
Online Access:https://hdl.handle.net/20.500.11815/2772
https://doi.org/10.3390/jrfm14010023
Description
Summary:This paper analyses Foreign Direct Investment (FDI) investment in Ireland and Iceland from other European countries during two periods, i.e., the pre-financial crisis period of 2000–2007 and the financial crisis period of 2008–2010. The aim of this research is to determine what made the countries interesting to foreign investors in both good and bad times; and, secondly, to examine whether European Union membership (and the Euro) made a difference in this respect. The results were obtained by using data from the OECD, the World bank, and other sources. The model constructed for the study applies the inverse hyperbolic sine transformation of the gravity model, which is a novel approach. The results demonstrate that before the financial crisis of 2008, European Union (EU) membership did not help Ireland attract more FDI from other EU countries. However, once it had been hit by the crisis, Ireland attracted more FDI from other EU countries. Iceland, on the other hand, which is not an EU country, attracted FDI from non-EU countries rather than from EU countries before the financial crisis. After the crisis, however, the origin within Europe, of FDI in Iceland had no significant effect on the flow of FDI into the country. Peer reviewed

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