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Regional and Country Determinants of Locational Decisions : Japanese Multinationals in European Manufacturing

Author

Listed:
  • Thiran, Jean-Marc

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) ; Belgian National Fund for Scientific Research (FNRS))

  • Yamawaki, Hideki

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper identifies the determinants of the locational pattern of Japanese foreign direct investment in European manufacturing industries in 1993, by using a new data set that covers 450 Japanese subsidiaries distributed across 45 regions and 9 member states in the European Union. The statistical analysis finds, most importantly, that both country and regional factors determine the locational pattern. Corporate tax rates, union’s activity and R&D capability are found to be significant locational factors at the national level, while regional labor costs, unemployment and transport infrastructure are the locational factors at the regional level.

Suggested Citation

  • Thiran, Jean-Marc & Yamawaki, Hideki, 1995. "Regional and Country Determinants of Locational Decisions : Japanese Multinationals in European Manufacturing," LIDAM Discussion Papers IRES 1995017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:1995017
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    Cited by:

    1. Àngels Pelegrín, 2003. "Regional Distribution of Foreign Manufacturing Investment in Spain. Do Agglomeration Economies Matter?," Working Papers 2003/6, Institut d'Economia de Barcelona (IEB).
    2. Hideki Yamawaki, 2006. "The location of American and Japanese multinationals in Europe," International Economics and Economic Policy, Springer, vol. 3(2), pages 157-173, November.
    3. Angels Pelegrin & Catalina Bolance, 2008. "Regional Foreign Direct Investment in Manufacturing. Do Agglomeration Economies Matter?," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 505-522.
    4. Àngels Pelegrín, 2003. "Regional Distribution of Foreign Manufacturing Investment in Spain. Do Agglomeration Economies Matter?," Working Papers 2003/6, Institut d'Economia de Barcelona (IEB).
    5. Àngels Pelegrín & Catalina Bolancé, 2006. "Regional foreign direct investment in manufacturing. Do agglomeration economies matter?," Working Papers 2006/2, Institut d'Economia de Barcelona (IEB).

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