Abstract
The largest regional disparities in CEE countries are between capital
and non-capital city regions. MNCs invest in these regions for various reasons,
contributing to regional development exogenously. In this paper we analyse
location decisions of FDI investments in the period 2003-2010. We find that the
most important location factors for FDI are market accessibility, strategic assets,
institutional quality and agglomeration, in the post-crisis era even more than before.
Presently, second-tier city regions are not capable of offering all these factors
simultaneously. For improving their opportunities and contribution to European
cohesion and convergence, more substantial and direct investments are needed.
Without these, the recently suggested competitiveness opportunities of second-tier
city regions are difficult to obtain.
and non-capital city regions. MNCs invest in these regions for various reasons,
contributing to regional development exogenously. In this paper we analyse
location decisions of FDI investments in the period 2003-2010. We find that the
most important location factors for FDI are market accessibility, strategic assets,
institutional quality and agglomeration, in the post-crisis era even more than before.
Presently, second-tier city regions are not capable of offering all these factors
simultaneously. For improving their opportunities and contribution to European
cohesion and convergence, more substantial and direct investments are needed.
Without these, the recently suggested competitiveness opportunities of second-tier
city regions are difficult to obtain.
Original language | English |
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Pages (from-to) | 193-214 |
Number of pages | 22 |
Journal | Investigaciones Regionales |
Volume | 29 |
Publication status | Published - 2014 |
Keywords
- Greenfield FDI
- CEE regions
- location factors
- competitive advantage