Spain and the 2004 Expansion of the European Union: A Case of FDI Diversion?

With the expansion of the European Union there have been concerns over increasing competition for FDI attraction between member states. This study will examine to what extent, if to any extent at all, the admission of the Central and Eastern countries to the EU has raised completion for FDI in Spain. Spain and the CEECs will be compared in terms of advantages in FDI attraction. Ultimately, evidence and analysis will suggest that given current trend, there is no serious threat to diverting foreign assets from Spain to the CEECs