المستودع الأكاديمي جامعة المدينة

Foreign direct investment, agglomerations and demonstration effects : an empirical investigation

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dc.creator Barry, Frank
dc.creator Görg, Holger
dc.creator Strobl, Eric
dc.date 2001
dc.date.accessioned 2013-10-16T06:24:27Z
dc.date.available 2013-10-16T06:24:27Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/2714
dc.identifier ppn:343851962
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/2714
dc.description Many 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.
dc.language eng
dc.publisher Leverhulme Centre for Research on Globalisation and Economic Policy, University of Nottingham Nottingham
dc.relation Research paper / Leverhulme Centre for Research on Globalisation and Economic Policy 2001,25
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject ddc:330
dc.subject Direktinvestition
dc.subject Amerikanisch
dc.subject Betriebliche Standortwahl
dc.subject Agglomerationseffekt
dc.subject Irland
dc.title Foreign direct investment, agglomerations and demonstration effects : an empirical investigation
dc.type doc-type:workingPaper


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