Foreign direct investment in a digital economy

Purpose – The analysis of the role of foreign direct investment (FDI) in the emergence and development of digital economy. Design/methodology/approach – Examination of the developments of FDI and the new destinations explained by the liberalization measures undertaken by governments and inward investment agencies in globalization. Findings – While FDI does displace some exports, it also creates a number of reverse imports. Companies are forced to improve their managerial efficiency. The elimination of internal barriers to trade and capital mobility has been accompanied by a rapid growth of multinational enterprises (MNEs) in EU. Originality/value – The development of e‐MNEs will bring different utilization of the production plants and use of logistics to distribute tangible goods, while intangible goods will be distributed by very advanced technology centres based on home locations. The digital economy should not be confined just to e‐business and e‐commerce.