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N° 2003-13 |
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| September |
How Different is Eastern Europe?
Structure and determinants of location choices by
French firms in Eastern and Western Europe |
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| We study in this paper the determinants of location choices of French multinational firms in Eastern and
Western Europe. Our sample includes 1843 location choices in 19 countries over the years 1980 to 1999.
Our results suggest there might be important differences between the two regions of Europe concerning
these determinants. Noticeably, agglomeration effects are less strong in CEECs than in European Union
countries. Location decisions are significantly and positively influenced by the institutional quality of the
host country. Our work also investigates whether investors consider Western Europe and Eastern Europe
as two distinct groups of potential host countries. We confirm the relevance of an East-West structure in
the country location decision and also show that the relevance of this structure decreases as the transition
process advances. |
Abstract |
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| Foreign direct investment, location choice, conditional logit, nested logit, European Union,
Eastern Europe |
Keywords |
| F23, R3 |
JEL classification |
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