Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107021 | International Business Review | 2017 | 9 Pages |
Abstract
This paper examines the variation in foreign direct investment (FDI) location decisions of European multinational enterprises (MNEs.) An innovative empirical approach is applied to a new data set which contains over 15,000 individual FDI location decisions in 25 European countries over a 17-year period and combines country-, industry- and firm-level factors. The empirical results show that the responsiveness of FDI location choices to country-level factors is heterogeneous both across sectors and across firms of different characteristics as well as unobserved factors. For example, the results show that the importance of market size increases with investing firm's size and skill intensity, while proximity between countries, as well as cultural and linguistic ties are more important for smaller firms.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Simona Rasciute, Paul Downward,