Agglomeration economies and the location of foreign direct investment: empirical evidence from Romania

Agglomerationsvorteile und der Standort von ausländischen Direktinvestitionen: empirische Evidenz aus Rumänien

[journal article]

Hilber, Christian A. L.; Voicu, Ioan

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-233651

Abstract	We exploit the large inflow of FDI into Romania, after the revolution in 1989, to study the determinants of FDI location in transition economies. Using a conditional logit setup and choice-specific fixed effects, we find that external economies from service agglomeration are the main determinant of FDI-location. An increase in service employment density by 10 percent makes the average Romanian county 11.9 percent more likely to attract a foreign investor. Industry specific foreign and domestic agglomeration economies and labor conflicts also impact FDI-location. A comparison with findings of other studies suggests that service agglomeration economies may be geographically quite localized.
Classification	Political Economy; Area Development Planning, Regional Research
Free Keywords	Agglomeration economies; Foreign direct investment; Transition economies
Document language	English
Publication Year	2010
Page/Pages	p. 355-371
Journal	Regional Studies, 44 (2010) 3
DOI	http://dx.doi.org/10.1080/00343400902783230
Status	Postprint; reviewed
Licence	PEER Licence Agreement (applicable only to documents from PEER project)
Document Type	journal article