Modeling FDI based on a spatially augmented gravity model: evidence for Central and Eastern European countriesLeibrecht, M. and Riedl, A. (2014) Modeling FDI based on a spatially augmented gravity model: evidence for Central and Eastern European countries. The Journal of International Trade & Economic Development, 23 (8). pp. 1206-1237. ISSN 0963-8199 Full text not archived in this repository. It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing. To link to this item DOI: 10.1080/09638199.2013.861006 Abstract/SummaryBased on a spatially augmented gravity model, the current paper isolates spatial interrelationships in foreign direct investment (FDI) to Central and Eastern European Countries (CEECs) not only across the destination but also across the origin country dimension of FDI. Results show that (i) spatial interrelationships across destination countries are present and are consistent with the predominance of vertical-complex FDI in total FDI; (ii) spatial correlation across origin countries is given in earlier years of transition, while spillover and competition effects cancel over the whole sample period; and (iii) agglomeration forces gain in importance for FDI to CEECs.
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