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Regional Foreign Direct Investment in Manufacturing. Do Agglomeration Economies Matter?

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  • Angels Pelegrin
  • Catalina Bolance

Abstract

Pelegrin A. and Bolance C. Regional foreign direct investment in manufacturing. Do agglomeration economies matter?, Regional Studies. This paper examines the role played by agglomeration economies as location determinants of regional foreign direct investment (FDI) in manufacturing. The analysis reveals that FDI location is dependent on specific industry traits and that agglomeration economies appear as the strongest pull factors. The model, estimated with panel data, finds evidence, first, that industries with a high level of linkages are attracted to regions with high manufacturing activity, and, second, that locations which accumulate research and development (R&D) activities attract chemical industries. Finally, cost-oriented industries do not value agglomeration economies and their localization emerges as a result of endowment reasons. [image omitted] Pelegrin A. et Bolance C. L'investissement direct etranger regional dans l'industrie - Les economies d'agglomeration, ont-elles de l'importance? Regional Studies. Cet article cherche a examiner le role que jouent les economies d'agglomeration dans la determination de la localisation de l'investissement direct etranger regional industrielle. L'analyse laisse voir que la localisation de l'investissement direct etranger depend des caracteristiques particulieres de l'industrie et que les economies d'agglomeration s'averent les forces motrices les plus puissantes. Estime a partir des donnees provenant d'une enquete a echantillon constant, le modele indique, primo, que les industries qui jouissent d'importantes liaisons se dirigent vers les regions dont l'activite industrielle est forte et, secundo, que les industries chimiques s'installent dans les zones ou s'agglomerent les activites de R et D. Pour conclure, les industries qui mettent l'accent sur les couts n'evaluent pas les economies d'agglomeration, et leur localisation s'explique par des caracteristiques particulieres. Investissement direct etranger Economies d'agglomeration Localisation de l'industrie regionale Caracteristiques industrielles Donnees par enquete a echantillon constant Pelegrin A. und Bolance C. Regionale auslandische Direktinvestitionen in produzierende Betriebe: Spielen Agglomerationswirtschaften eine Rolle? Regional Studies. In diesem Beitrag wird untersucht, welche Rolle Agglomerationswirtschaften als Standortdeterminanten fur regionale auslandische Direktinvestitionen in produzierende Betriebe spielen. Aus der Analyse geht hervor, dass der Standort fur auslandische Direktinvestitionen von spezifischen Branchenmerkmalen abhangt und dass von Agglomerationswirtschaften die starkste Anziehungskraft auszugehen scheint. Aus diesem Modell, das auf Schatzungen anhand von Paneldaten beruht, gehen Belege hervor, dass erstens hochgradig verknupfte Branchen von Regionen mit ausgepragter Produktionstatigkeit angezogen werden, und dass zweitens Standorte, in denen sich F&E-Aktivitaten konzentrieren, Chemiebetriebe anziehen. Kostenorientierte Branchen schliesslich legen keinen Wert auf Agglomerationswirtschaften; hier richtet sich die Standortwahl nach Aspekten der Ausstattung. Auslandische Direktinvestitionen Agglomerationswirtschaften Regionale Produktionsstandorte Branchenmerkmale Paneldaten Pelegrin A. y Bolance C. Inversion directa extranjera regional en manufacturacion �Importan las economias de aglomeracion? Regional Studies. En este articulo examinamos el rol desempenado por las economias de aglomeracion como determinantes de ubicacion de la inversion directa extranjera regional en manufacturacion. El analisis indica que la ubicacion de la inversion directa extranjera depende de particularidades especificas en la industria y que las economias de aglomeracion aparecen como los factores mas solidos de atraccion. Con el modelo, segun una estimacion de datos de panel, se demuestra primero que las industrias con un alto nivel de vinculos se ven atraidos por regiones con una alta actividad de manufacturacion y segundo, que las ubicaciones en las que se acumulan las actividades de I + D atraen a las industrias quimicas. Finalmente, las industrias basadas en el coste no valoran las economias de aglomeracion y su ubicacion depende de la dotacion de la region. Inversion directa extranjera Economias de aglomeracion Ubicacion de manufacturacion regional Particularidades de la industria Datos de panel

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 42 (2008)
Issue (Month): 4 ()
Pages: 505-522

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Handle: RePEc:taf:regstd:v:42:y:2008:i:4:p:505-522

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Keywords: R12; F21; F23;

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Cited by:
  1. Angels Pelegrín & Catalina Bolancé, 2011. "Offshoring and company characteristics: some evidence from the analysis of Spanish firm data," Working Papers 2011/16, Institut d'Economia de Barcelona (IEB).
  2. Neil Foster-McGregor & Robert Stehrer, 2008. "Sectoral Productivity, Density and Agglomeration in the Wider Europe," wiiw Working Papers 47, The Vienna Institute for International Economic Studies, wiiw.
  3. Ford, Timothy C. & Rork, Jonathan C., 2010. "Why buy what you can get for free? The effect of foreign direct investment on state patent rates," Journal of Urban Economics, Elsevier, vol. 68(1), pages 72-81, July.
  4. Gary Cook & Naresh Pandit & Hans Loof & Bˆrje Johansson, 2011. "The Influence of Clustering on MNE Location and Innovation in Great Britain," ERSA conference papers ersa10p1489, European Regional Science Association.

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