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Foreign Direct Investment in the Czech Republic: The Role of Origin Effects and Government Promotion Abroad

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  • Joel I Deichmann

    (Global Studies Department, Bentley University, 175 Forest Street, Waltham, Massachusetts 02452, USA.)

Abstract

This paper examines country-of-origin effects accounting for the Czech Republic's accumulation of $60 billion in FDI during the years surrounding accession to the European Union. Careful attention is paid to CzechInvest's assertive marketing through offices abroad. Government promotion initially drew investment from firms in countries relatively less familiar with the Czech Republic, and while its importance is confirmed empirically, it remains inferior to agglomeration and trade flows, and is followed by EU membership. The inquiry yields substantial consistency across model specifications with variables that eclipse other conventional explanations of FDI including market factors, exchange rates, and geographical distance.

Suggested Citation

  • Joel I Deichmann, 2010. "Foreign Direct Investment in the Czech Republic: The Role of Origin Effects and Government Promotion Abroad," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 52(2), pages 249-272, June.
    • Handle: RePEc:pal:compes:v:52:y:2010:i:2:p:249-272
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    Cited by:

    1. Masahiro Tokunaga & Ichiro Iwasaki, 2017. "The Determinants of Foreign Direct Investment in Transition Economies: A Meta-analysis," The World Economy, Wiley Blackwell, vol. 40(12), pages 2771-2831, December.
    2. Tokunaga, Masahiro & Suganuma, Keiko & Odagiri, Nami, 2018. "From Russia to Eurasia : Specific Features of the “Russosphere” from the Perspective of Business Activities of Japanese Firms," RRC Working Paper Series 77, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    3. Tokunaga, Masahiro & Iwasaki, Ichiro, 2014. "Transition and FDI: A Meta-Analysis of the FDI Determinants in Transition Economies," RRC Working Paper Series 47, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

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