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Concentration of FDI and regional disparities - The role of regional policy

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  • Miroslav Sipikal

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Abstract

Foreign direct investment could be very important external source for economic growth, especially in the less developed countries. Several studies showed strong concentration of FDI in most developed regions of the hosting countries, which lead to increasing regional disparities within these countries. FDI often cause crowd out effects for domestic firms in lagging regions. The article will examines role of regional policy in FDI attraction in order to achieve more regional benefits from FDI. We will analyze most often measures taken by regional policy and its interaction with other policies. We will show case study of several regions in Central Europe as an example.

Suggested Citation

  • Miroslav Sipikal, 2011. "Concentration of FDI and regional disparities - The role of regional policy," ERSA conference papers ersa10p126, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p126
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper126.pdf
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    1. László Halpern & Balázs Muraközy, 2007. "Does distance matter in spillover?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15, pages 781-805, October.
    2. Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, August.
    3. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2007. "When Does FDI Have Positive Spillovers? Evidence from 17 Emerging Market Economies," CEPR Discussion Papers 6546, C.E.P.R. Discussion Papers.
    4. Damijan, Jože P. & Rojec, Matija & Majcen, Boris & Knell, Mark, 2013. "Impact of firm heterogeneity on direct and spillover effects of FDI: Micro-evidence from ten transition countries," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 895-922.
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