Evidence on Determinants of Foreign Investments: the Case of Three European Regions. A revised Version

This study aims at analysing the determinants of foreign direct investment (FDI) inflows for a group of European regions. The originality of this approach lies in the use of disaggregated data by sector at regional level. First, we develop a qualitative description of our database and discuss the importance of the determinants in attracting FDI. Then, we provide an econometric exercise to identify the potential determinants of FDI inflows. We show that, although relying on a combination of determinants that differs from one region to another, regional FDI inflows mainly depend on regional rather than national determinants.