In this paper, we utilize firm-level data on foreign firm manufacturing plants in four Central and Eastern European Countries, in order to trace their location and estimate the determinants of their choice processes. At this purpose, we use a nested logit model as developed by McFadden (1974). Several reasons explain the need for mapping FDI. First of all, this would help to understand the real competitiveness of regions and countries in providing location advantages able to complement MNEs’ organisational and internalisation advantages. Secondly, it would directly show the distribution of the benefits usually associated with FDI. Finally, an understanding of FDI location decisions is important for policy makers who believe that MNEs may offer a positive contribution to the economic development of disadvantage areas and thus correct potential regional imbalances. Main results show that sector specific factors affect the choice of final location. These unobserved characteristics influence both the determinants and the structure of MNEs location choice process.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy in its series ISLA Working Papers with number
20.
Length: 27 pages Date of creation: Jun 2005 Date of revision:
Sep 2005 Handle: RePEc:slp:islawp:islawp20
Contact details of provider: Postal: via Sarfatti, 25 - 20136 Milano - Italy Phone: +39.025836.2296 Fax: +39.025836.5439 Web page: http://www.isla.unibocconi.it/
For technical questions regarding this item, or to correct its listing, contact: (Stefano Riela).
Find related papers by JEL classification: F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies
This paper has been announced in the following NEP Reports:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)