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Title: An empirical investigation of the determinants of the location of foreign direct investment in the Central and Eastern European countries using multilevel data
Authors: Rasciute, Simona
Pentecost, Eric J.
Marques, Helena
Keywords: Multi-level data
Foreign direct investment
Multinomial logit model
Issue Date: 2007
Publisher: © Loughborough University
Series/Report no.: Loughborough University. Department of Economics. Discussion Paper Series;WP 2007 - 22
Abstract: This paper employs a novel multi-level data set and a multinomial logit model - to examine the factors explaining 1,223 foreign investment location decisions by firms in the EU(15), Japan, Norway, Russia, Switzerland and the US in 12 Central and Eastern European countries (CEECs). The highly significant empirical results, based on a general underlying model of imperfect competition, show that the responsiveness of foreign direct investment in the CEECs to country-level variables differs significantly both across sectors and across firms of different sizes and profitability. In particular, in addition to the traditional importance of market size and distance, firm size and the effective corporate tax rate are also important for the location of investment.
Description: This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_22.html
Version: Published
URI: https://dspace.lboro.ac.uk/2134/4178
ISSN: 1750-4171
Appears in Collections:Working Papers (Economics)

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