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Empirical Literature on Location Choice of Multinationals

In: Complexity and Geographical Economics

Author

Listed:
  • Roberto Basile

    (Second University of Naples)

  • Saime Kayam

    (Istanbul Technical University)

Abstract

The location choices of multinational enterprises have been the center of attention both empirically and theoretically in international and regional economics during the last 20 years. Different approaches and methods have been employed to examine foreign firms’ location decisions. We make a critical assessment of these approaches and their contributions to our understanding of dispersion of multinational activities across space. We start from the most influential theoretical contributions which have addressed the motivation of MNEs to be engaged in a horizontal or a vertical FDI and provide a list of the large number of foreign firms’ location determinants considered in the literature. Then, we discuss the various econometric specifications used in the empirical literature to test the hypotheses on these determinants. Finally, we discuss issues for further development specifically for modeling multinationals’ economic activity in space.

Suggested Citation

  • Roberto Basile & Saime Kayam, 2015. "Empirical Literature on Location Choice of Multinationals," Dynamic Modeling and Econometrics in Economics and Finance, in: Pasquale Commendatore & Saime Kayam & Ingrid Kubin (ed.), Complexity and Geographical Economics, edition 127, pages 325-351, Springer.
    • Handle: RePEc:spr:dymchp:978-3-319-12805-4_13
    DOI: 10.1007/978-3-319-12805-4_13
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    Cited by:

    1. Tamás Krisztin & Philipp Piribauer, 2021. "Modelling European regional FDI flows using a Bayesian spatial Poisson interaction model," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 593-616, December.
    2. Fodouop Kouam Arthur William, 2024. "Navigating the Relocation Trend: The Rising Shift of Multinational Corporations from China to Other Countries," International Journal of Science and Business, IJSAB International, vol. 34(1), pages 62-75.

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