European Integration and Outward FDI from Central and Eastern Europe: Is There Any Evidence of Knowledge-seeking?

Björn Jindra, Sohaib S. Hassan, Jutta Günther, Uwe Cantner

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    The European Union (EU) Member States in central and eastern Europe (CEE) witnessed a surge in outward foreign direct investment (OFDI) between 2000 and the start of the global financial crisis. This article investigates whether the European integration process altered the relative importance of host country location factors. In particular, we investigate to what extent knowledge-seeking is a relevant investment motive, which has been documented as a key determinant for OFDI from other emerging economies. We apply a discrete choice approach to model foreign location choice of firms from CEE countries (CEECs) within the EU 27 (1996-2010). We find that the EU integration process is related with increasing importance of market access and less emphasis on labour cost advantages. We find heterogeneity in the valuation of foreign knowledge-related assets. The location probability within the EU15 is positively associated with knowledge-seeking. It also plays a role for technology-intensive industries and larger firms
    The European Union (EU) Member States in central and eastern Europe (CEE) witnessed a surge in outward foreign direct investment (OFDI) between 2000 and the start of the global financial crisis. This article investigates whether the European integration process altered the relative importance of host country location factors. In particular, we investigate to what extent knowledge-seeking is a relevant investment motive, which has been documented as a key determinant for OFDI from other emerging economies. We apply a discrete choice approach to model foreign location choice of firms from CEE countries (CEECs) within the EU 27 (1996-2010). We find that the EU integration process is related with increasing importance of market access and less emphasis on labour cost advantages. We find heterogeneity in the valuation of foreign knowledge-related assets. The location probability within the EU15 is positively associated with knowledge-seeking. It also plays a role for technology-intensive industries and larger firms
    LanguageEnglish
    JournalJournal of Common Market Studies
    Volume53
    Issue number6
    Pages1248-1267
    ISSN0021-9886
    DOIs
    StatePublished - 2015

    Keywords

    • Central and eastern europe
    • European Integration
    • Location choice
    • Outward FDI

    Cite this

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    title = "European Integration and Outward FDI from Central and Eastern Europe: Is There Any Evidence of Knowledge-seeking?",
    abstract = "The European Union (EU) Member States in central and eastern Europe (CEE) witnessed a surge in outward foreign direct investment (OFDI) between 2000 and the start of the global financial crisis. This article investigates whether the European integration process altered the relative importance of host country location factors. In particular, we investigate to what extent knowledge-seeking is a relevant investment motive, which has been documented as a key determinant for OFDI from other emerging economies. We apply a discrete choice approach to model foreign location choice of firms from CEE countries (CEECs) within the EU 27 (1996-2010). We find that the EU integration process is related with increasing importance of market access and less emphasis on labour cost advantages. We find heterogeneity in the valuation of foreign knowledge-related assets. The location probability within the EU15 is positively associated with knowledge-seeking. It also plays a role for technology-intensive industries and larger firms",
    keywords = "Outward FDI, Location choice;, European integration, Central and eastern europe, Central and eastern europe, European Integration, Location choice, Outward FDI",
    author = "Bj{\"o}rn Jindra and Hassan, {Sohaib S.} and Jutta G{\"u}nther and Uwe Cantner",
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    volume = "53",
    pages = "1248--1267",
    journal = "Journal of Common Market Studies",
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    European Integration and Outward FDI from Central and Eastern Europe : Is There Any Evidence of Knowledge-seeking? / Jindra, Björn ; Hassan, Sohaib S.; Günther, Jutta; Cantner, Uwe.

    In: Journal of Common Market Studies, Vol. 53, No. 6, 2015, p. 1248-1267.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - European Integration and Outward FDI from Central and Eastern Europe

    T2 - Journal of Common Market Studies

    AU - Jindra,Björn

    AU - Hassan,Sohaib S.

    AU - Günther,Jutta

    AU - Cantner,Uwe

    PY - 2015

    Y1 - 2015

    N2 - The European Union (EU) Member States in central and eastern Europe (CEE) witnessed a surge in outward foreign direct investment (OFDI) between 2000 and the start of the global financial crisis. This article investigates whether the European integration process altered the relative importance of host country location factors. In particular, we investigate to what extent knowledge-seeking is a relevant investment motive, which has been documented as a key determinant for OFDI from other emerging economies. We apply a discrete choice approach to model foreign location choice of firms from CEE countries (CEECs) within the EU 27 (1996-2010). We find that the EU integration process is related with increasing importance of market access and less emphasis on labour cost advantages. We find heterogeneity in the valuation of foreign knowledge-related assets. The location probability within the EU15 is positively associated with knowledge-seeking. It also plays a role for technology-intensive industries and larger firms

    AB - The European Union (EU) Member States in central and eastern Europe (CEE) witnessed a surge in outward foreign direct investment (OFDI) between 2000 and the start of the global financial crisis. This article investigates whether the European integration process altered the relative importance of host country location factors. In particular, we investigate to what extent knowledge-seeking is a relevant investment motive, which has been documented as a key determinant for OFDI from other emerging economies. We apply a discrete choice approach to model foreign location choice of firms from CEE countries (CEECs) within the EU 27 (1996-2010). We find that the EU integration process is related with increasing importance of market access and less emphasis on labour cost advantages. We find heterogeneity in the valuation of foreign knowledge-related assets. The location probability within the EU15 is positively associated with knowledge-seeking. It also plays a role for technology-intensive industries and larger firms

    KW - Outward FDI

    KW - Location choice;

    KW - European integration

    KW - Central and eastern europe

    KW - Central and eastern europe

    KW - European Integration

    KW - Location choice

    KW - Outward FDI

    U2 - 10.1111/jcms.12260

    DO - 10.1111/jcms.12260

    M3 - Journal article

    VL - 53

    SP - 1248

    EP - 1267

    JO - Journal of Common Market Studies

    JF - Journal of Common Market Studies

    SN - 0021-9886

    IS - 6

    ER -