Multinational investments across Europe: a multilevel analysis

Jonas Kleineick; A. Ascani; M.J. Smit

doi:10.1007/s10037-020-00139-2

Multinational investments across Europe: a multilevel analysis

Jonas Kleineick, A. Ascani, M.J. Smit

Gran Sasso Science Institute

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

This research focuses on the investigation of the location determinants of multinational corporations’ investments in EU countries. Investment projects are addressed by making a distinction between greenfield investments and M&A projects. Besides traditional factors (such as market characteristics) the effect of innovation capabilities and the institutional environment are incorporated in the analysis. The use of a multilevel model makes it possible to empirically assess the effect of national and regional characteristics on the location decision of multinationals. The results suggest that greenfield investments and M&A are similar in their location determinants, although the former have a stronger correlation with highly educated populations. Urbanisation, associated with land cost, as well as national (rather than regional) markets are insignificant. Finally, we find no evidence for the importance of political stability within Europe.

Original language	English
Pages (from-to)	67-105
Journal	Jahrbuch für Regionalwissenschaft
Volume	40
Issue number	1
DOIs	https://doi.org/10.1007/s10037-020-00139-2
Publication status	Published - 9 Apr 2020

Keywords

mulitnationals
investment
regions
European Union

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Multinational investments across Europe: a multilevel analysis

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Keywords

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