The Geography of Multinational Corporations in CEE Countries: perspectives for Second-Tier City Regions and European Cohesion Policy

The largest regional disparities in CEE countries are between capital and non-capital city regions. MNCs invest in these regions for various reasons, contributing to regional development exogenously. In this paper we analyse location decisions of FDI investments in the period 2003-2010. We find that...

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Bibliographic Details
Main Authors: Dogaru, Teodora, Burger, Martijn, van Oort, Frank G., Karreman, Bas
Format: Article
Language:English
Published: Asociación Española de Ciencia Regional 2014
Online Access:https://dialnet.unirioja.es/servlet/oaiart?codigo=4883571
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Summary:The largest regional disparities in CEE countries are between capital and non-capital city regions. MNCs invest in these regions for various reasons, contributing to regional development exogenously. In this paper we analyse location decisions of FDI investments in the period 2003-2010. We find that the most important location factors for FDI are market accessibility, strategic assets, institutional quality and agglomeration, in the post-crisis era even more than before. Presently, second-tier city regions are not capable of offering all these factors simultaneously. For improving their opportunities and contribution to European cohesion and convergence, more substantial and direct investments are needed. Without these, the recently suggested competitiveness opportunities of second-tier city regions are difficult to obtain