IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Economic Institutions and the Outward FDI Location Strategies of Emerging Market Multinational Business Groups: Evidence from Central and Eastern European Countries

Listed author(s):
  • Sohaib Shahzad Hassan
Registered author(s):

    Using an extensive data set on the Outward Foreign Direct Investment (OFDI) projects from Central and Eastern European Countries (CEEC), this study empirically examines the impacts of host country economic institutions, including property rights protection, corruption, taxation, business operating regulations and economic stability, on firms' location decisions in the European Union (EU), while controlling for other conventional determinants of location choice. From a data set of 24,726 location decisions of 951 firms for a time period from 1995 to 2010, the robust empirical evidence suggests that a corruption-free country with a lower tax burden and friendly business regulations positively influence the OFDI location choice strategies of CEEC multinationals. However, these factors vary depending on whether the host country has an advanced economy (EU15: original member countries of the EU), or an emerging economy (CEEC). The effects of economic institutions are more profound on the location activities in the advanced economies of the EU than in other CEEC. Furthermore, CEEC investors generally prefer to be located in countries that have better institutions than their home countries.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Requires registration. Users must be registered and log in to access full text

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Università di Perugia in its journal Review of Economics and Institutions.

    Volume (Year): 6 (2015)
    Issue (Month): 1 ()

    in new window

    Handle: RePEc:pia:review:v:6:y:2015:i:1:n:6
    Contact details of provider: Postal:
    via Pascoli, 20 - 06123 Perugia

    Phone: +39 075 5855279
    Fax: +39 075 5855299
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pia:review:v:6:y:2015:i:1:n:6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ubaldo Pizzoli)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.