Spatial complexity and interactions in the FDI attractiveness of regions

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may This version: May 2013 AbstractThis study investigates the factors that drive the distribution of foreign direct investments (FDI) in European regions, and attempts to disentangle the spatial complexity of this phenomenon. In particular, we argue that the capacity of regions to attract FDI is affected by the own-country effect, which can take two different forms: the first relates to the relative performance in Europe of the country of which the region is part (the between-country effect), while the second concerns the relative performance of regions within their own countries (the within-country effect). We find that the own-country effect does exist, and that it affects the attractiveness of regions through several channels. Most importantly, our findings indicate that the within-country effect is weaker than the between-country effect. This means that successful regions in unsuccessful countries do not on average enjoy any extra-FDI premium, while unsuccessful regions in successful countries generally do so.

Has the crisis affected Spanish investment strategy abroad? A spatial panel data approach

“…Relevant papers on the choice of FDI locations have adopted a spatial analysis at the regional level(Blanc-Brude, Cookson, Piesse, & Strange, 2014;Casi & Resmini, 2014;Coughlin & Segev, 2000;Kayam, Yabrukov, & Hisarciklilar, 2013;Ledyaeva, 2009;Sharma, Wang, & Sunny Wong, 2014;Villaverde & Maza, 2015).6 There is a third, recent and less investigated approach. It incorporates interdependencies across origin and destination countries in the analysis of FDI determinants.…”

“… Relevant papers on the choice of FDI locations have adopted a spatial analysis at the regional level (Blanc‐Brude, Cookson, Piesse, & Strange, ; Casi & Resmini, ; Coughlin & Segev, ; Kayam, Yabrukov, & Hisarciklilar, ; Ledyaeva, ; Sharma, Wang, & Sunny Wong, ; Villaverde & Maza, ). …”

Modelling innovation performance of European regions using multi-output neural networks

“…To estimate the level of FDI, we adopted the approach of Casi and Resmini [ 34 ], using the number of new foreign firms per million inhabitants. FDI can contribute significantly to regional innovation capacity and produce positive productivity spillovers [ 35 ], but the strength of these effects depends on the availability of the region’s absorptive capacity.…”

Spatial Linkages in FDI Location: Evidence from the Spanish Regions

“…The results indicate that the attractiveness of a particular location to foreign investors depends not only on the location‐specific attributes but also on the proximity to alternative FDI locations. Using FDI into European NUTS 2 regions, Casi and Resmini () estimate a spatial lag model over the period 2005–07. Their results show that the capacity of a region to attract FDI depends on its location advantages as well as on the own country effect, further broken up into the within (the relative performance of the region within its own country) and the between country components (the relative performance of the country of which the region is part).…”