Uncovering regional typologies in Europe in terms of interregional and intraregional direct investment flows

Abstract

Information regarding direct investment flows across European space is scarce, and in most of the cases at the national level. Such a scarcity limits the capacity to undertake the required analyses and to derive the corresponding conclusions on the interrelations among European regions. This is especially so considering that Europe is gradually moving from a “space of States” to a “State of spaces” and from a “space of places’’ to a “space of flows’’. In a nutshell, the pure essence of the European economic integration process is the gradual “thinning” and “melting” of (the artificial) border impediments. Thus, as the process of European economic integration is in full swing, European territories have been experiencing a period of unprecedented change, being transformed into integral parts of the European economic space. The paper uncovers regional typologies in Europe in terms of interregional and intraregional (NUTS 2 level) direct investment flows in year 2018, the year prior to the eruption of the COVID19 pandemic. To this end, the paper compiles an O-D matrix for interregional and intraregional direct investment flows in Europe, constructs tailor-made clustering indicators and employs the k-means clustering technique.