Olan McEvoy
Research expert covering the European Union for society, economy, and politics.
Get in touch with us nowLuxembourg is by far the European country which had the largest stock of inward foreign direct investment (FDI) when compared with their gross domestic product (GDP). The stock of inward FDI in the small Western European country was worth over 14 times the country's annual GDP, reflecting the complete reliance of Luxembourg on foreign investors and companies. Luxembourg has become a hub of intra-European investment due to its strategic position as a center of EU administration and politics, its low corporation tax rates, and its relatively relaxed foreign investment regulations.
Similarly, the Netherlands and Ireland have become hubs for foreign investment due to their more liberal investment regulations, with these countries having inward FDI stocks worth over 2.5 times their GDP. Conversely, Turkey, Italy, and Greece had inward FDI stocks worth less than a quarter of their GDP.
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Overview
Outward foreign direct investment
Inward foreign direct investment
FDI flows in selected European countries
FDI stocks in selected European countries
Foreign controlled enterprises in Europe
Other issues related to foreign direct investment