Regional Policy and FDI Location – an Overview of the Larger New EU Member States

Gabor Hunya

No 393, wiiw Research Reports from The Vienna Institute for International Economic Studies, wiiw

Abstract: Summary The paper compares three countries (Hungary, Poland and Romania) in terms of the number of greenfield FDI projects and of GDP by NUTS-2 sub-country regions. We discuss whether the particular regions received a smaller or larger share of projects than their share in GDP. Then we outline the regional and investment policy tools applied in each of the countries, looking at their possible impact on the location choice of investors. The investigation reveals significant regional gaps in attracting new FDI projects and a dominance of the capital cities. Regional discrepancies between NUTS-2 regions in terms of per capita GDP have become marginally smaller in recent years but were mainly unrelated to the location of new foreign investments. State aid for large investments, industrial parks and special economic zones has been among the most powerful tools directing the location choice of new FDI projects.

Keywords: FDI; industrial location; regional policy; FDI policy (search for similar items in EconPapers)
JEL-codes: F21 F23 R30 R38 R58 (search for similar items in EconPapers)
Pages: 31 pages including 3 Tables and 14 Figures
Date: 2014-03
New Economics Papers: this item is included in nep-cse, nep-geo, nep-int, nep-ppm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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