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Regionalization and the features of direct investment movement in the EU internal market at the present stage

ISSUE 7, JULY 2026

PDF  Article PDF Version

Received: 27 February 2026

Accepted: 11 March 2026

Available online: 30 July 2026

Subject Heading: INVESTING

JEL Classification: F21, G11, G24

Pages: 219-238

https://doi.org/10.24891/qqmxjr

Subject. Intra?European foreign direct investments (FDI), their regionalization and country?specific distribution patterns in the internal market of the European Union in 2013–2024.
Objectives. To assess the dynamics and degree of FDI regionalization within the EU, to identify the direct investment models of the largest European economies, and to determine the role of Central and Eastern European (CEE) countries and small economies in shaping intra?European investment linkages.
Methods. An analysis of statistics from the OECD, Eurostat, national statistical agencies, and relevant international organizations was applied. Methods of comparative and structural analysis were used.
Results. It is shown that, despite a moderate decline in the share of intra?European FDI, intra?regional investment chains demonstrate increased resilience to external shocks compared with capital flows to third countries. German, French, Italian, Spanish, Luxembourgish, and Dutch FDI models were identified; they differ in terms of the degree of regionalization, sectoral structure, and functional purpose of investments (market access, cost reduction, export platform, tax optimization). An increase in the importance of CEE countries as capital recipients has been recorded, along with a clustering effect manifested in heightened mutual investment activity among neighbouring small economies.
Conclusions and Relevance. Intra?European FDI remains a key dimension of EU countries’ participation in the international capital movement, while the differentiation of national FDI models and the growing role of CEE and small economies deepen the multi?level structure of the EU investment space. The obtained results can be used in the development of national and regional investment strategies, in improving the regulatory environment of the single market within integration associations, and in designing measures to enhance the investment attractiveness of individual countries and regions.

Keywords: foreign direct investment, domestic market, EU, international capital movement

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