Agglomeration, international linkages and the location choices of European foreign direct investors

Client/Funding Institution

Oesterreichische Nationalbank/Jubilee Fund


This project investigated the location decision of multinational companies from six European countries in the EU over the period 2003-2010. A conditional logit model was used to estimate the impact of agglomeration effects on location choices of FDI investors. In addition, we included international inter-industry linkages which reflect the openness of a host country. This framework allowed us to compare the importance of two potentially opposing factors relevant for FDI decisions.


January 2013 - June 2014

wiiw team Leader

Roman Stöllinger

wiiw Staff

Roman Stöllinger, Alexandra Bykova, Leon Podkaminer

Keywords: foreign direct investment, manufacturing

Countries covered: Austria, Bulgaria, Czech Republic, Estonia, EU-27, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia

Research Areas: International Trade, Competitiveness and FDI, Sectoral studies