Barriers to FDI in the European Union Countries: The Perception of Foreign Subsidiaries

Abstract Literature on FDI location determinants has adopted a macro approach, and only few studies have followed a micro perspective, analyzing FDI barriers in the EU. This study aims to fill this gap through an exploratory study based on the perceptions of 42 foreign subsidiaries established in the EU since 2010. Results indicate that bureaucracy and labor market structure and regulations are the most significant barriers. Additionally, the perception of barriers differs considering the subsidiaries’ location and mode of establishment, suggesting the need for tailor made policies, in order to overcome the barriers perceived to be higher in certain locations.