Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50014
Authors: 
Siedschlag, Iulia
Zhang, Xiaoheng
Smith, Donal
Year of Publication: 
2009
Series/Report no.: 
ESRI working paper 336
Abstract: 
We analyse the location decisions of 8,468 foreign affiliates in the Information and Communication Technologies (ICT) sector established in 224 regions in the European Union over the period 1998-2008. Our results suggest that on average, the location probability of foreign affiliates in ICT manufacturing and services increases with market size, market potential, the presence of other foreign-owned firms in the ICT sector, human capital, income tax, and decreases with the corporation tax rate. In addition, in the case of foreign affiliates in ICT services, the innovation intensity in the ICT sector has a positive effect on the location probability. We find that relevant geographical structures for the location decision are different for multinationals with a parent firm in the European Union and the United States.
Subjects: 
foreign direct investment
Information and Communication Technologies
location choice
conditional logit
nested logit
Document Type: 
Working Paper

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