Vertical Industry Linkages and the Location of Foreign Direct Investment in Poland

Martin Breßlein, Andrzej Cieślik and Xenia Matschke

Eastern European Economics, 2019, vol. 57, issue 6, 457-483

Abstract: We study the determinants of locational choice for new foreign affiliates across Polish regions with special focus on the role of agglomeration externalities using a conditional logit framework and firm-level data from the Amadeus database and a Polish dataset on regional and industry-region characteristics at the NUTS 2 level. The estimation results show that higher local demand agglomeration increases the probability that a foreign parent company founds an affiliate in a certain Polish region, whereas adverse labor market conditions, which manifest themselves in high unemployment and low wage rates, negatively affect the location probability.

Date: 2019
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DOI: 10.1080/00128775.2019.1575756

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