Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190480 
Year of Publication: 
2017
Series/Report no.: 
IEHAS Discussion Papers No. MT-DP - 2017/19
Publisher: 
Hungarian Academy of Sciences, Institute of Economics, Budapest
Abstract: 
A great deal of multinationals receive a bundle of hidden or cash subsidizes upon investing in a foreign country. Policymakers often argue that a subsidy today will help locate friends of the investor later on. Using extensive data on FDI investments, we analyze such patterns. In particular, we investigate if co-location is more frequent among connected firms such as members of business groups as well as firms sharing similar background. Focusing on investments into Central and Eastern European countries we find evidence of co-location pattern of connected firms.
Subjects: 
Foreign direct investment
agglomeration
location choice
network effects
business groups
JEL: 
F23
R3
ISBN: 
978-615-5457-06-7
Document Type: 
Working Paper

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