FDI from Emerging Economies in EU27: A Location Choice Analysis

This paper scrutinizes FDI from a wide range of emerging economies (including newly industrializing Asian countries, Latin American countries and East European transition economies) that adopted different growth models in the past. The overarching research question of this paper is to which the integration of firms from different emerging economies via FDI into the global economy is linked to technological upgrading. We assume that technology seeking in advanced economies should be reflected in the relevance of particular location factors such as knowledge spillover. We analyses a large firm level data set of a total of 30.000 firm entries into the EU27 between 1996 and 2010. We apply series of conditional logit estmations to assess different sources of spillovers on the sub-national location choice.