Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/2626 
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dc.contributor.authorBarry, Franken
dc.contributor.authorGörg, Holgeren
dc.contributor.authorStrobl, Ericen
dc.date.accessioned2009-01-28T14:25:54Z-
dc.date.available2009-01-28T14:25:54Z-
dc.date.issued2001-
dc.identifier.urihttp://hdl.handle.net/10419/2626-
dc.description.abstractMany previous studies have shown that the localization 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’ – 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|aCentre for Economic Policy Research (CEPR) |cLondonen
dc.relation.ispartofseries|aCEPR Discussion Paper Series |x2907en
dc.subject.jelF23en
dc.subject.ddc330en
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.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.printppn333890019en

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