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Regional foreign direct investment in manufacturing. Do agglomeration economies matter?
[journal article]
Abstract This paper examines the role played by agglomeration economies as location determinants of regional foreign direct investment in manufacturing. The analysis reveals that foreign direct investment location is dependent on specific industry traits, and that agglomeration economies appear as the strong... view more
This paper examines the role played by agglomeration economies as location determinants of regional foreign direct investment in manufacturing. The analysis reveals that foreign direct investment location is dependent on specific industry traits, and that agglomeration economies appear as the strongest pull factors. The model, estimated with panel data, finds evidence, first, that industries with a high level of linkages are attracted to regions with high manufacturing activity; and, second, that locations which accumulate R+D activities attract chemical industries. Finally, cost-oriented industries do not value agglomeration economies and their localization emerges due to endowment reasons.... view less
Classification
Area Development Planning, Regional Research
Political Economy
Economic Policy
Free Keywords
agglomeration economies; foreign investment; regional location
Document language
English
Publication Year
2008
Page/Pages
p. 505-522
Journal
Regional Studies, 42 (2008) 4
DOI
https://doi.org/10.1080/00343400701543157
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)