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Spatial complexity and interactions in regions? FDI attractiveness

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  • Laura Resmini

    ()

  • Laura Casi

Abstract

This study investigates the factors that drive the distribution of foreign direct investments (FDI) into European regions, trying to disentangle the spatial complexity of this economic relationship. In particular, we argue that regions' capacity to attract FDI is affected by own-country effects, which can take two different forms: the first relates to the relative performance of the country a region belongs to in Europe (between country effect) while the second concerns the relative performance of regions' within their own countries (within country effect). We find that own country effects exist, though the within country effect is weaker than the between country effect. The absolute performance of countries is able to affect that of their own regions along many axes, on top of region?s absolute performance. When modelling spatial interactions and spillovers, it also emerges a clear pattern of territorial competition among regions in attracting FDI.

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File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_01063.pdf
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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa13p1063.

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Date of creation: Nov 2013
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Handle: RePEc:wiw:wiwrsa:ersa13p1063

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Related research

Keywords: FDI; spatial effects; regions' competitiveness;

References

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  2. Hogenbirk,Annelies & Narula,Rajneesh, 2004. "Location and agglomeration of FDI in The Netherlands: implications for policy," Research Memorandum 006, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
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  17. Fazia Pusterla & Laura Resmini, 2005. "Where do foreign firms locate in transition Countries? An empirical investigation," ISLA Working Papers 20, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised Sep 2005.
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