Google+

Newsletter signup

Email address:

EuCham - European Chamber - 2015-03 Foreign Direct Investment per capita in Europe

     


     
     
     



2015-03 Foreign Direct Investment per capita in Europe

European countries are listed by the European Chamber according to Foreign Direct Investment (FDI) inflows per capita, based on the 2013 data published by the World Bank. The rate considers the capital used to acquire an ownership of at least 10%, in an enterprise of a country other than the one where the investors reside in.

According to “Doing Business”, there is a strong correlation between FDI inflow and the degree of ease of doing business in a specific country. EuCham analyzes FDI per capita to highlight its relevance to business success.

Download PDF

 

EuCham Charts
March 2015

Foreign Direct Investment per capita in Europe


1

Luxembourg

55,367

2

Ireland

10,872

3

Netherlands

1,911

4

Austria

1,634

5

Iceland

1,451

...

   

44

Malta

-4,414


USD FDI per capita in 2013, World Bank, 2014
44 European countries were considered


EuCham_Charts_Logo.jpg

  • Foreign Direct Investment (FDI) is a controlling ownership in an enterprise by a company based abroad

  • There is a strong correlation between FDI inflow per capita and the degree of ease in doing business with a specific country

  • Luxembourg attracts most of the foreign investments per capita, with USD 55,367 per resident

  • Following in the ranking are Ireland, Netherlands, Austria and Iceland

  • Malta positions at the bottom, facing a loss of USD 4,414 per resident in terms of foreign investments

 

Source: eucham.eu/charts

 

Detailed Information

EuCham - European Chamber lists the European countries according to Foreign Direct Investment (FDI) inflows per capita based on the 2013 data published by the World Bank. The rate considers the capital used to acquire an ownership of at least 10%, in an enterprise of a country other than the one where the investors reside in. According to “Doing Business”, there is a strong correlation between FDI inflow and the degree of ease of doing business in a specific country. EuCham analyzes FDI per capita to highlight its relevance to business success.

Luxembourg is ranked top with USD 55,366.8 FDI inflow per capita, which are mainly concentrated in the banking and insurance sectors. The countries following in the top 5 are Ireland, Netherlands, Austria and Iceland. Surprisingly, Malta, which could count on an English-proficient labour force and privileged geographical position, facilitating trade in the Mediterranean area, occupies the bottom of the chart with a negative USD 4,414.4 per capita. This is due to the decline in tourism resulted from the 2008 worldwide crisis and the Libyan war.  

In conclusion, EuCham focused this month Chart on FDI inflow figures to highlight its relevance to a country’s economic growth and its impact on society welfare. Benefits for the local population include increased employment opportunities and improved infrastructures.

 

Methodology

A positive value of FDI per capita represents an inflow of foreign investment in a country’s economy distributed among its residents, whereas negative values indicate withdrawn investments.

Table 1 has been created based on the values of the “Total Population” and “Foreign Direct Investment, net inflows” 2013 databases of World Bank (2014). For San Marino, Monaco and Liechtenstein data were not available.

 

Business focus: Foreign Investment in Europe

Migration has overflowed the political and economic debate over the past decades as the globalization of the job markets expands. However, its benefits, costs, issues and advantages are generally overlooked from a business perspective.

Undoubtedly, immigration has proven to be highly beneficial for businesses and for SMEs. Yet, a lack of governmental intervention on a global and national scale cause the frequent occurrence of some issues, of which illegal immigration is the most severe. It puts businesses at risk and make ethical enterprises be outcompeted by unethical organization, which can benefit by hiring illegal immigrants at lower costs thus unfairly providing cheaper services. Other issues include the difficulty to assimilate immigrants into the work culture and language barriers.

When considering a global expansion, countries with high immigration may be preferred due to their favourable conditions such as the provision of language and cultural knowledge that current staff might not possess. Moreover, the diversification of the workforce might foster innovation and protect from anti-discrimination laws.

Furthermore, skilled immigrants represent an under-tapped talent pool of highly flexible, adaptable and loyal workers, ideal for expanding businesses. Unskilled immigration can also be beneficial for the national economy and enterprises, by providing a steady supply of candidates to fill job openings often neglected by native people.

EuCham - European Chamber listed the European countries according to the migration rates, which indicates the difference between immigrants and emigrants of a country in a given year per 1,000 persons, based on data from Central Intelligence Agency (2014). As seen here by these metrics, SMEs could take advantage of the high migration inflows occurring in Cyprus, Luxembourg, Norway which by providing advantageous tax and bureaucratic laws attracting with immigration a stream of inflow capital which can ultimately stimulate the economy.

Table 1: FDI Net Inflows per capita USD

Rank

Country

FDI in USD

Population

FDI per capita

1

Luxembourg

30,075,373,593

543,202

55366.8

2

Ireland

49,960,134,752

4,595,281

10872.1

3

Netherlands

32,109,654,413

16,804,224

1910.8

4

Austria

13,843,770,472

8,473,786

1633.7

5

Iceland

468,688,707

323,002

1451.0

6

Spain

44,917,006,387

46,647,421

962.9

7

Portugal

7,881,591,922

10,459,806

753.5

8

Estonia

964,588,953

1,324,612

728.2

9

Montenegro

446,490,330

621,383

718.5

10

Germany

51,266,993,711

80,621,788

635.9

11

Cyprus

607,038,885

1,141,166

531.9

12

Norway

2,627,258,488

5,084,190

516.8

13

Russia

70,653,718,709

143,499,861

492.4

14

Czech Republic

5,006,911,507

10,521,468

475.9

15

Albania

1,253,783,309

2,773,620

452.0

16

Latvia

880,800,000

2,013,385

437.5

17

Slovakia

2,148,266,702

5,414,095

396.8

18

Denmark

1,597,210,042

5,613,706

284.5

19

Azerbaijan

2,619,437,000

9,416,598

278.2

20

Serbia

1,974,338,182

7,613,976

275.6

21

Greece

2,945,417,938

11,032,328

267.0

22

Bulgaria

1,887,670,064

7,265,115

259.8

23

Lithuania

712,435,949

2,956,121

241.0

24

Belarus

2,246,100,000

9,466,900

237.3

25

Italy

13,126,395,561

59,831,093

219.4

26

Georgia

949,335,750

4,476,900

212.1

27

Romania

4,108,000,000

19,963,581

205.8

28

Macedonia

376,454,351

2,107,158

178.7

29

Turkey

12,918,000,000

74,932,641

172.4

30

Croatia

588,376,068

4,252,700

138.4

31

Armenia

370,196,773

2,976,566

124.4

32

Ukraine

4,509,000,000

45,489,600

99.1

33

France

6,480,400,817

66,028,467

98.1

34

Bosnia & Herzegovina

315,018,539

3,829,307

82.3

35

United Kingdom

4,831,445,402

64,097,085

75.4

36

Moldova

249,040,000

3,559,000

70.0

37

Poland

-4,586,000,000

38,530,725

-119.0

38

Slovenia

-418,664,939

2,060,484

-203.2

39

Belgium

-3,268,505,983

11,195,138

-292.0

40

Hungary

-4,301,988,209

9,592,247

-434.7

41

Sweden

-5,119,205,196

9,592,552

-533.7

42

Finland

-5,296,740,409

5,439,407

-973.8

43

Switzerland

-8,179,472,592

8,081,482

-1012.1

44

Malta

-1,868,526,810

423,282

-4414.4

Sources: World Bank (2014)
EuCham Research Department - Compiled by Ms Mitsuko Takagi and Mr Luca Nazzicone 2015-02-27

 

Image 01 Image 02 Image 03 Image 04 Image 05