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Regional Determinants of MNE's Location Choice in Transition Economies

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  • Andrea Gauselmann
  • Philipp Marek

Abstract

This paper analyses the impact of agglomeration effects, labour market conditions and other determinants on the location choice of MNEs in transition economies. We compare data from 33 regions in East Germany, the Czech Republic and Poland using a conditional logit model on a sample of 4,343 subsidiaries for the time period 2000-2010. The results show that agglomeration advantages, such as sectoral specialisation, a certain economic diversity as well as a region's economic and technological performance prove to be some of the most important pull factors for FDI in transition regions. In addition, the labour market factors prove to play an important role in the location of FDI.

Suggested Citation

  • Andrea Gauselmann & Philipp Marek, 2011. "Regional Determinants of MNE's Location Choice in Transition Economies," WIFO Working Papers 412, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2011:i:412
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    File URL: https://www.wifo.ac.at/wwa/pubid/43113
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    Cited by:

    1. Gabor Hunya, 2014. "Regional Policy and FDI Location – an Overview of the Larger New EU Member States," wiiw Research Reports 393, The Vienna Institute for International Economic Studies, wiiw.
    2. Dettmann, Eva & Dominguez Lacasa, Iciar & Günther, Jutta & Jindra, Björn, 2013. "Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009)," IWH Discussion Papers 12/2013, Halle Institute for Economic Research (IWH).
    3. Gauselmann, Andrea, 2013. "R&D Co-operation in European Post-transition Economies," IWH Discussion Papers 4/2013, Halle Institute for Economic Research (IWH).
    4. Dettmann, Eva & Lacasa, Iciar Dominguez & Guenther, Jutta & Jindra, Bjorn, 2014. "Детерминанты Зарубежной Технологической Активности В Германии - Количественный Анализ Транснациональных Патентов [Determinants of Foreign Technological Activity in German Regions - A Count Model An," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(1), pages 34-51.

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