Sunday, 23 October 2011: 11:15 AM
This paper investigates the effect of investing-firm heterogeneity on the investment location decisions of multinational enterprises, using a discrete choice model and a novel three-level dataset, which includes over 1100 foreign direct investment (FDI) location decisions into 13 alternative Central and Eastern European countries (CEECs) over an eleven-year period. The estimated eclectic theoretical model generates empirical results that show that the responsiveness of the probabilities of the choice to invest in a particular CEEC to country-level variables, differs both across sectors and across firms of different sizes and profitability.