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National boundaries and the location of multinational firms in Europe

Basile, R., Castellani, D. ORCID: and Zanfei, A. (2009) National boundaries and the location of multinational firms in Europe. Papers in Regional Science, 88 (4). pp. 733-748. ISSN 1435-5957

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To link to this item DOI: 10.1111/j.1435-5957.2009.00238.x


Using data on 5,102 subsidiaries established in the period 1991–1999, we examine the location choice of multinational firms of different nationalities in 47 regions of five EU countries. In particular we estimate a nested logit model and find that European multinationals consider regions across different countries as relatively closer substitutes than regions within national borders. This is consistent with the hypothesis that European regions compete to attract foreign direct investments relatively more across than within countries. However, in line with previous studies, we also find that national boundaries still play some role in choices made by non-European multinationals.

Item Type:Article
Divisions:Henley Business School > International Business and Strategy
ID Code:43714

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