In this paper we examine the location determinants of the inflow of Foreign Direct Investment (FDI) into Poland, at a regional level. Using survey data from an online questionnaire in February 2005 and a multinomial logit model incorporating the investor’s specific characteristics, we show that knowledge-seeking factors alongside market and agglomeration factors, act as the main drivers for the...

A key feature of the Swedish economy over last decade and a half has been the rapid internationalisation of its economy, both through FDI and trade. In this paper we consider the relationship between these two trends: whether the effect of increased inward FDI on exports by domestic firms may be positive or negative. The first case may occur as a result of demonstration effects. The second may ...

The international direct investment theory is one of domains which develop quickly in the international economics after the Second World War. Comparing with that obviously, the research of influencing factors about FDI (Foreign Direct Investment) develops very slowly. For a long time, FDI was thought to exert very important function to the economical increase of the host country, but in recent ...

The present paper is concerned with the attractiveness of countries to direct foreign investments, that is, the host country characteristics that attract direct foreign investment (FDI). It focuses on two types of national characteristics— those that attract inflows of all foreign investment (intermediate products), including FDI, that is, mobility factors; and those that influence the modality...

The paper studies the correlations between FDI in services and manufacturing efficiencies in host countries. First a theoretical analysis is presented on the direct and indirect channels through which FDI in services enhances manufacturing efficiencies in host countries. Then the forward linkages and backward linkages between FDI in services and manufacturing sector in host countries are tested...

This paper estimates the impact of foreign direct investment (FDI) on capital accumulation, and output and total factor productivity (TFP) growth in the recipient economy. Time series and panel data evidence are provided for a sample of OECD and non-OECD countries in the period 1970±90. Although FDI is expected to boost long-run growth in the recipient economy via technological upgrading and kn...

Central and Eastern European (CEE) countries are in an economic transition process which involves convergence of economic performance with the European Union. One of the principle engines for the necessary transformation towards EU average economic performance is inward-FDI. Quantitatively examining the causes of FDI in the CEE region is thus an important research area. Traditional linear regre...

This paper quantitatively investigates the impact of falling FDI barriers on changes in intra-industry reallocations and aggregate productivity growth. Expanding on our earlier work (Arita and Tanaka 2011), we calibrate an adapted version of Eaton, Kortum, and Kramarz’s (2011) general equilibrium model of heterogeneous firms to Japanese multinational firms facing fixed and variable FDI barriers...

FDI flows grew exponentially during the 1990s, experienced a sharp decline over the period 20012004, and have recently started to recover. The decline was mostly due to a fall in FDI flows within the OECD, particularly of FDI flows to continental Europe. In recent years, FDI flows to developing countries have also increased substantially. This trend has been encouraged by governments who view i...

This paper aims to explore the role of spillovers in the strategic choice for a MNE in a duopoly model, especially focusing on endogenous FDI spillovers with spillover-prevention costs. After discussing the exogenous spillover case, this paper shows that with a quadratic spillover-prevention cost function, the FDI-performing firm may choose a positive level of spillovers, which is lower than th...