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Regional determinants of German FDI in the Czech Republic: new evidence on the role of border regions

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  • Johannes Schäffler
  • Veronika Hecht
  • Michael Moritz

Abstract

Regional determinants of German FDI in the Czech Republic: new evidence on the role of border regions. Regional Studies. Using a unique dataset, the regional distribution of German multinationals and their Czech affiliates is analysed. The investigation focuses on locational factors for joint foreign direct investment (FDI) projects that can only be revealed by taking a home-host country perspective. A light is shed on the strong position of the common border region and its asymmetric interconnectedness. While the Czech border region constitutes an attractive target area for investors from all over Germany, multinational firms in the German border region show a significant preference to invest in Czech regions close by, but not so in the non-border regions in the neighbouring country.

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  • Johannes Schäffler & Veronika Hecht & Michael Moritz, 2017. "Regional determinants of German FDI in the Czech Republic: new evidence on the role of border regions," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1399-1411, September.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:9:p:1399-1411
    DOI: 10.1080/00343404.2016.1185516
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    2. Schäffler, Johannes & Moritz, Michael, 2018. "German FDI in the Czech Republic - Employment effects in the home country," IAB-Discussion Paper 201806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Konstantin Koerner & Michael Moritz & Johannes Schäffler, 2022. "Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic," The World Economy, Wiley Blackwell, vol. 45(6), pages 1773-1829, June.
    4. Mehmet Pinar & Thanasis Stengos, 2021. "Democracy in the neighborhood and foreign direct investment," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 449-477, February.
    5. Yamlaksira S. Getachew & Roger Fon & Elie Chrysostome, 2023. "On the location choices of African multinational enterprises: Do supranational economic institutions matter?," Journal of International Business Policy, Palgrave Macmillan, vol. 6(4), pages 453-490, December.
    6. Michael Moritz & Veronika Hecht & Patricia Noska & Johannes Schaffler, 2020. "Types of FDI and Determinants of Affiliate Size: the Classification Makes the Difference," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 70(4), pages 312-331, October.
    7. Hannah Illing, 2023. "Crossing Borders: Labor Market Effects of European Integration," ECONtribute Discussion Papers Series 221, University of Bonn and University of Cologne, Germany.
    8. Mitze, Timo & Breidenbach, Philipp, 2023. "The complex regional effects of macro-institutional shocks: Evidence from EU economic integration over three decades," Ruhr Economic Papers 1007, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Illing, Hannah, 2023. "Crossing Borders: Labor Market Effects of European Integration," IZA Discussion Papers 15930, Institute of Labor Economics (IZA).
    10. Mitze, Timo & Breidenbach, Philipp, 2018. "Economic integration and growth at the margin: A space-time incremental impact analysis," Ruhr Economic Papers 775, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Felipe J. Fonseca & Irving Llamosas-Rosas, 2019. "Spatial linkages and third-region effects: evidence from manufacturing FDI in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 265-284, April.
    12. Llamosas-Rosas Irving & Fonseca Felipe J., 2018. "Determinants of FDI Attraction in the Manufacturing Sector in Mexico, 1999-2015," Working Papers 2018-07, Banco de México.

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