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Foreign Direct Investment Location Choice Factors: Some Evidence for Brazil

Author

Listed:
  • Romana KOREZ-VIDE

    (Faculty of Economics and Business, University of Maribor)

  • Patrick VOLLER

    (FH Joanneum Graz, University of Applied Sciences)

  • Vito BOBEK

    (FH Joanneum Graz, University of Applied Sciences)

Abstract

Due to the liberalization and transformation of emerging markets economies, the attractiveness of these countries for foreign direct investors has been rising in the last decades. This paper explores foreign direct investment (FDI) location choice factors of German and Austrian companies in Brazilian regions. We perform a quantitative analysis, based on the Multinomial Nested Logit Model and supplement its findings by the qualitative analysis, based on the semi-structured experts’ interview. The analyses show that investor-nation specific agglomeration, industry specialization, workforce qualification and physical infrastructure were important FDI location choice factors for German and Austrian companies in Brazil. Suggestions for future research of the FDI location choice factors are discussed.

Suggested Citation

  • Romana KOREZ-VIDE & Patrick VOLLER & Vito BOBEK, 2014. "Foreign Direct Investment Location Choice Factors: Some Evidence for Brazil," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 2(3), pages 424-439, December.
    • Handle: RePEc:nup:jrmdke:v:2:y:2014:i:6:p:424-439
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    References listed on IDEAS

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