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

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

Client/Funding Institution

Anniversary Fund of the Oesterreichische Nationalbank

Abstract

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.