The Effects of the Enlargement of the EU: The Mobility of factors of Production

In the present paper we analyse the role of foreign direct investment in the new acceding economies. The question to be answered is whether the new countries in EU may improve their positions in order to capture FDI flows from their comparative advantages and the southern European countries can worse their positions in the new internal market created in 2004. Besides, we will study if the movements of population between the central European countries and the EU-15 are affected by the last economic changes.