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Regional Determinants of German FDI in the Czech Republic - Evidence from a gravity model approach

Johannes Schäffler, Veronika Hecht and Michael Moritz ()

Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

Abstract: On the basis of a unique dataset the regional distribution of German multinationals and their Czech affiliates is analysed for both countries. The investigation covers market size and agglomeration features, distance issues, and labour market characteristics. Apart from the vital role of large markets and a low transport distance there are further crucial findings regarding joint foreign direct investment (FDI) projects that can be revealed from a home-host country perspective: the strong position of the common border region, the non-relevance of a relatively high wage gap between the site of the headquarters and the location of the affiliate in coincidence with the great importance of the availability of high-skilled employees in the target country, and differences in the significance of sectoral employment shares.

JEL-codes: F15 F23 R12 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-geo, nep-int, nep-sbm, nep-tra and nep-ure
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Working Paper: Regional determinants of German FDI in the Czech Republic: evidence from a gravity model approach (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:112891

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