The Role of Foreign Direct Investment in the Economic Development of EU Countries

This study examines the role of foreign direct investment in the economic development of EU countries. FDI plays an important role in stimulating economic growth, job creation, innovation development and integration of national economies into global chain. The study examines crucial aspects of FDI in Europe including its historical evolution, impact on economic growth employment and innovation as well the impact of events such as Brexit and trade agreements’ changes. The methodology of the study is based on a theoretical review, comparative analysis and empirical data revealing the dynamics of FDI inflows and outflows, the main trends and determinants of investor’s choice. The main results demonstrate that FDI does make a significant contribution to the economic development of Europe particularly in sectors such as high technology and sustainable development. However serious challenges remain here such as poorly coordinated investment policies and growing geopolitical instability. Based on the analysis suggestions are provided to improve investment climate and increase the attractiveness of the region for investors.