Market Potential, Productivity and Foreign Direct Investment: Some Evidence from Three Case Studies

European Planning Studies, Vol. 18, No. 2, pp. 147-168, 2010

35 Pages Posted: 11 Jul 2011

See all articles by Lionel Artige

Lionel Artige

University of Liège

Rosella Nicolini

Universitat Autònoma de Barcelona

Date Written: January 30, 2009

Abstract

This paper aims at analysing the importance of local determinants to foreign direct investment (FDI) in three European regional case studies. The originality of the approach lies in the use of disaggregated data by sector and by region. The results are threefold. First, regional demand and productivity are fundamental FDI determinants, confirming most studies with national data. Second, regional FDI inflows are more dependent on regional than national determinants. Finally, the effect of market potential measured with absolute GDP on regional FDI diminishes linearly with distance and does not when measured with GDP per capita.

Keywords: Foreign Direct Investment, Market Potential, Productivity, Regions

JEL Classification: F20, O18, R10

Suggested Citation

Artige, Lionel and Nicolini, Rosella, Market Potential, Productivity and Foreign Direct Investment: Some Evidence from Three Case Studies (January 30, 2009). European Planning Studies, Vol. 18, No. 2, pp. 147-168, 2010, Available at SSRN: https://ssrn.com/abstract=1362135

Lionel Artige

University of Liège ( email )

B-4000 Liege
Belgium

Rosella Nicolini (Contact Author)

Universitat Autònoma de Barcelona ( email )

Edifici B
Campus UAB
Bellaterra, Barcelona 08193
Spain

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
64
Abstract Views
577
Rank
622,763
PlumX Metrics