Location Choices of Multinational Firms in Europe: the Role of National Bourdaries and EU PolicyRoberto Basile () and Davide Castellani No 183, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano Abstract: We examine the determinants of multinational firms’ location choices in Europe by estimating a nested logit model on a data-set of 5,761 foreign subsidiaries established in 55 regions in 8 EU countries over the period 1991-1999. We find that firms perceive regions across different countries as more similar than regions within national borders. This might be revealing that the process of European integration has reduced the national specificities perceived by multinationals and that regions within Europe attract FDIs more across than within countries. Controlling for regional market size and potential, agglomeration economies and labor markets conditions, we also find that EU regional policy, captured by Cohesion Funds and Objective 1 eligibility, played a significant role in attracting multinationals, thus mitigating the agglomeration forces at work. Differences emerge in determinants of EU and US multinationals location choices, with special reference to the role of labor markets. Keywords: Europe, Foreign Direct Investments; Location; Nested Logit Models (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:183 Access Statistics for this paper More papers in Development Working Papers from Centro Studi Luca d'Agliano, University of Milano Contact information at EDIRC. |
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