The role of psychic distance stimuli on the East-West FDI location structure in the EU. Evidence from Spanish MNEs
Alfredo Jiménez Palmero,
Juan José Durán Herrera and
Juan Manuel de la Fuente Sabaté
Journal of East European Management Studies, 2013, vol. 18, issue 1, 36-65
Eastern Europe nowadays represents an important and attractive economic area for foreign direct investment. Determinants of investments have converged with those of other European countries. However, it has been argued that a differentiated East-West structure still exists in Europe. This study examines the existence of such a structure from the novel perspective of psychic distance stimuli, showing no evidence of its persistence. Moreover, the results provide evidence on the fundamental role played by different dimensions of psychic distance, especially in levels of industrial development and language, as obstacles to foreign direct investments. On the contrary, distance in education is positively associated with investments, reflecting an efficiency-seeking MNE approach.
Keywords: psychic distance; multinational enterprise; direct foreign investment; conditional logit model; Central and Eastern European Countries (search for similar items in EconPapers)
JEL-codes: J24 L10 L21 L22 L25 L26 P30 (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2013_01_palmero
Ordering information: This journal article can be ordered from
Rainer Hampp Verlag, Journals, Vorderer Lech 35, 86150 Augsburg, Germany. A subscripton is required to access pdf files. Pay per article is available at
Access Statistics for this article
Journal of East European Management Studies is currently edited by Thomas Steger, editor-in chief
More articles in Journal of East European Management Studies from Rainer Hampp Verlag
Series data maintained by Rainer Hampp ().