Regional integration or investment attractiveness? FDI dynamics in the EUSAIR macro-region

The EU Strategy for the Adriatic-Ionian Region (EUSAIR) aims to foster economic integration and regional cooperation among its member countries. Within this framework, Foreign Direct Investment (FDI) represents a key channel through which integration processes materialize. However, the extent to which EUSAIR has effectively reshaped FDI dynamics remains underexplored, particularly in terms of the balance between regional integration and external investment attractiveness.This paper provides a systematic empirical assessment of FDI dynamics across the nine EUSAIR economies over the period 2009–2023, capturing both pre- and post-EUSAIR developments. The analysis combines descriptive evidence with the construction of novel indicators. The study provides a novel framework for understanding how regional integration and external attractiveness interact to shape investment patterns. The results reveal a dual dynamic. On the one hand, intra-regional FDI has expanded significantly, indicating a strengthening of cross-border investment linkages within the macro-region, particularly after 2014. On the other hand, extra-regional FDI continues to dominate in structural terms, highlighting the persistent role of country-specific attractiveness factors. This pattern is accompanied by pronounced asymmetries between EU and non-EU economies, reflecting an anchor–recipient structure in which more advanced economies act as sources of capital, while others remain dependent on external inflows.