Inter- and intra-industry linkages as a determinant of FDI in Central and Eastern Europe |
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Authors: | Julien Lefilleur Mathilde Maurel |
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Institution: | CES, University of Paris I, 106-112 Blvd de l’Hôpital, 75013 Paris, France |
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Abstract: | This paper uses an unpublished dataset on disaggregated foreign direct investment (FDI) in Central and Eastern European countries (CEECs), and is rooted in new economic geography literature. A 10% increase in access to suppliers based in the FDI recipient country or access to the EU15 market for intermediate goods increases FDI by about 2% in Central European countries and by 1% in Eastern European countries. We argue that Central (core) European countries specialise in upstream industries and re-export goods toward FDI-origin countries, while Eastern (periphery) European countries are also involved in this production chain, but to a lesser extent. |
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