THE REGIONAL LOCATION OF FOREIGN DIRECT INVESTMENTS: A REVIEW OF THE EVIDENCE
THE REGIONAL LOCATION OF FOREIGN DIRECT INVESTMENTS: A REVIEW OF THE EVIDENCE

Summary/Abstract: The question where to locate a company at regional level remains a very challenging issue because the regional attractiveness patterns for investments are very complex and dynamic. The paper gathers and analyses several studies that use quantitative methods to describe the mechanism of the regional location of foreign companies. The focus is on the nested logit models that identify the highest probability of a location for being chosen from several groups of alternatives according to a set of determinants of various types. By resuming studies on different countries, periods of time and factors of local attractiveness, we can conclude the efficiency of this type of quantitative methods in describing the grounds of choosing the geographical area for implantation. Nevertheless, the most important contribution of the paper is synthesizing the regional determinants of the location of FDI and the efficiency of regional policies.

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