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dc.contributor.authorBarry, Franken
dc.contributor.authorGörg, Holgeren
dc.contributor.authorStrobl, Ericen
dc.date.accessioned2009-01-28T14:16:28Z-
dc.date.available2009-01-28T14:16:28Z-
dc.date.issued2001-
dc.identifier.pihdl:10197/1317en
dc.identifier.urihttp://hdl.handle.net/10419/2586-
dc.description.abstractMany previous studies have shown that the localisation of firms can be an important factor in attracting new foreign direct investment into a host country. What has been missing in this literature thus far, however, is an investigation into the reasons why industry clusters attract firms. We distinguish between “efficiency agglomerations” as firms locating close to each other because they can increase their efficiency by doing so, and “demonstration effects”, whereby existing firms send signals to new investors as to the reliability of the host country and newly entering firms follow previous firms. In this paper we try to disentangle these two effects, by examining the location of US and UK firms in Ireland. We calculate proxies for “efficiency agglomerations” and “demonstration effects” and include these proxies in an empirical model of the location decision of firms. For US firms, we find that both efficiency agglomeration and demonstration effects are important determinants of entry. For UK firms, however, the evidence is not as clear cut.en
dc.language.isoengen
dc.publisher|aUniversity College Dublin, Department of Economics |cDublinen
dc.relation.ispartofseries|aCentre for Economic Research Working Paper Series |xWP01/04en
dc.subject.jelF23en
dc.subject.ddc330en
dc.subject.keywordforeign direct investmenten
dc.subject.keywordagglomerationsen
dc.subject.keyworddemonstration effectsen
dc.subject.stwDirektinvestitionen
dc.subject.stwAmerikanischen
dc.subject.stwBetriebliche Standortwahlen
dc.subject.stwAgglomerationseffekten
dc.subject.stwIrlanden
dc.titleForeign direct investment, agglomerations and demonstration effects: An empirical investigation-
dc.typeWorking Paperen
dc.identifier.ppn740053906en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:ucn:wpaper:200104en

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