Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203913
Authors: 
Bellak, Christian
Leibrecht, Markus
Stehrer, Robert
Year of Publication: 
2008
Series/Report no.: 
wiiw Working Paper No. 48
Abstract: 
Using public policy instruments to attract Foreign Direct Investment (FDI) has become standard in most countries, irrespective of their level of development, geographical location or industrial structure. Against this background the paper analyses the suitability of various public policies to attract inward FDI stock based on a sample of 11 countries and 10 industries from the manufacturing sector over 10 years. For this aim we derive an empirical baseline model of the determinants of inward FDI stock. From this baseline model, FDI gaps - measured as the difference between the 'estimated actual' inward FDI stock and the 'potential' FDI stock which could be realized if a certain 'best practice policy' were carried out - are derived. The analysis focuses on business taxation, public research and development expenditures, the information and communication infrastructure endowment, labour costs as well as institutional and skill-related policies. The analysis inter alia reveals the share of each of these location factors in the total industry- and country-level FDI gap.
Subjects: 
economic policy
foreign direct investment
European Union
industry-level study
location decision
JEL: 
F21
H25
H71
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.