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Vertical Industry Linkages and the Location of Foreign Direct Investment in Poland

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  • Martin Bresslein
  • Andrzej Cieslik
  • Xenia Matschke

Abstract

We study the determinants of locational choice for new foreign affiliates across Polish regions with special focus on the role of agglomeration externalities using a conditional logit framework and firm-level data from the Amadeus database and a Polish dataset on regional and industry-region characteristics at the NUTS 2 level. The estimation results show that higher local demand agglomeration increases the probability that a foreign parent company founds an affiliate in a certain Polish region, whereas adverse labor market conditions, which manifest themselves in high unemployment and low wage rates, negatively affect the location probability.

Suggested Citation

  • Martin Bresslein & Andrzej Cieslik & Xenia Matschke, 2019. "Vertical Industry Linkages and the Location of Foreign Direct Investment in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 57(6), pages 457-483, November.
  • Handle: RePEc:mes:eaeuec:v:57:y:2019:i:6:p:457-483
    DOI: 10.1080/00128775.2019.1575756
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    Cited by:

    1. Nguyen, Chi-Hai & Ngo, Quang-Thanh & Pham, My-Duyen & Nguyen, Anh-Tuan & Huynh, Ngoc-Chuong, 2021. "Economic linkages, technology transfers, and firm heterogeneity: The case of manufacturing firms in the Southern Key Economic Zone of Vietnam," MPRA Paper 109670, University Library of Munich, Germany.

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