EPRS Admin By / September 26, 2014

Untapped Potential Internal Market (Barriers to FDI) – Predicted Effects EU-28 Member State Level

Notes: Entries for countries denoted with * should be considered with caution as prediction is
based on imputed values for regulatory stringency regarding barriers to FDI and NTBs.

Untapped Potential Internal Market (Barriers to FDI) - Predicted Effects EU-28 Member State Level

Tables 6 and 7 report the breakdown of the economic benefits that accrue due to the
removal of trade barriers for each of the EU-28 Member States under each of the three
scenarios. Table 6 shows that with the removal of barriers to FDI, especially Eastern
European countries, such as Estonia, Lithuania, Slovenia and Latvia, would increase their
relative exports in the internal market (around 3.80 per cent). A similar conclusion can be
drawn regarding the removal of NTBs. The results suggest that Croatia, Estonia,
Lithuania and Latvia are among the countries that gain most in terms of export growth in
the internal market. It is not surprising that these countries would increase their trade
potential most, as their initial regulatory stringency is well above the EU average.


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