State-owned enterprises as foreign direct investors: insights from EU countries

The aim of this paper is to present and discuss the scale of foreign direct investment made by state-owned enterprises (SOEs) registered in EU countries in other EU countries in 2017. We created a comprehensive dataset of all intra-EU SOEs' FDI, on the basis of micro-level data on foreign affiliates, which had hitherto been missing. The role of SOEs' FDI in the EU economy is relatively low. However, in terms of the home country, we observe a significant asymmetry. Almost 92% of SOE's foreign affiliates come from the old-EU members. French SOEs are most engaged in FDI activities within EU countries, followed by Germany and Italy. In post-socialist countries, SOEs still play an important role in the economy; however, their activities are concentrated in domestic markets. SOEs are substantial investors in foreign markets in the energy sector. The most attractive countries for investment by state-owned multinational companies are the United Kingdom, Germany and the Netherlands.