Legal Barriers to Foreign Direct Investment and Their Economic Impact in the EU

Abstract

Foreign Direct Investment (FDI) is a critical driver of economic growth and development within the European Union (EU). However, various legal barriers can impede the flow of FDI, influencing its economic impact across member states. This paper examines the legal barriers to FDI within the EU, including regulatory inconsistencies, national protectionist measures, and bureaucratic inefficiencies. Through a comprehensive review of the literature and analysis of case studies, the study identifies how these barriers affect FDI inflows and their subsequent economic implications. The paper concludes by proposing policy recommendations aimed at enhancing FDI attractiveness and minimizing legal obstacles, thus fostering a more integrated and competitive European market.