Regional and Country Determinants of Locational Decisions: Japanese Multinationals in European Manufacturing

Jean-Marc Thiran and Hideki Yamawaki
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Jean-Marc Thiran: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) ; Belgian National Fund for Scientific Research (FNRS)
Hideki Yamawaki: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)

No 1995017, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper identifies the determinants of the locational pattern of Japanese foreign direct investment in European manufacturing industries in 1993, by using a new data set that covers 450 Japanese subsidiaries distributed across 45 regions and 9 member states in the European Union. The statistical analysis finds, most importantly, that both country and regional factors determine the locational pattern. Corporate tax rates, union’s activity and R&D capability are found to be significant locational factors at the national level, while regional labor costs, unemployment and transport infrastructure are the locational factors at the regional level.

Pages: 28
Date: 1995-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:1995017

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