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

Client/Funding Institution

Anniversary Fund of the Oesterreichische Nationalbank


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

Alexandra Bykova, Leon Podkaminer, Roman Stöllinger

Keywords: foreign direct investment, manufacturing

Countries covered: Austria, Bulgaria, Czechia, Estonia, EU27, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia

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