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Regionalism, innovation and the location of German direct investment

Author

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  • Nigel Pain

    ()

  • Ray Barrell

    ()

Abstract

This paper explores the extent to which the scale and location of foreign direct investment by German manufacturing corporations is affected by indigenous technological developments and different forms of regional integration agreements. The authors use an annual panel data set covering investment in the individual EU countries, EFTA, the United States, Latin America and East Asia and control for market size, relative factor cost and domestic financial conditions. The results provide evidence of regional heterogeneity, with investment in the EU being primarily driven by market demand and relative costs and investment outside the EU being more heavily influenced by technological and financial factors.

Suggested Citation

  • Nigel Pain & Ray Barrell, 1996. "Regionalism, innovation and the location of German direct investment," National Institute of Economic and Social Research (NIESR) Discussion Papers 91, National Institute of Economic and Social Research.
  • Handle: RePEc:nsr:niesrd:246
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    Cited by:

    1. Jost, Thomas, 1997. "Direktinvestitionen und Standort Deutschland," Discussion Paper Series 1: Economic Studies 1997,02, Deutsche Bundesbank.
    2. Jost, Thomas & Nunnenkamp, Peter, 2002. "Bestimmungsgründe deutscher Direktinvestitionen in Entwicklungs- und Reformländern: hat sich wirklich etwas verändert?," Kiel Working Papers 1124, Kiel Institute for the World Economy (IfW).

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