In this paper we statistically test the validity of the mechanics of complex VFDI in Japanese machinery FDI to East Asia; we do this by estimating a multiple-spatial lag model. From the theoretical point of view, in complex VFDI, the production activity of affiliates in a given country is...

Unlike most existing studies, this paper examines the location choices of MNEs in developing countries. Specifically, we investigate the location choices of Japanese MNEs among East Asian developing countries by estimating a four-stage nested logit model at the province level. Noteworthy results...

One of the key factors behind the growth in global trade in recent decades is an increase in intermediate input as a result of the development of vertical production networks (Feensta, 1998). It is widely recognized that the formation of production networks is due to the expansion of...

Relocation is a way of reducing costs, thus increasing competitiveness, by splitting production and services between countries. The main argument kindling the relocation debate suggests that moving abroad generates job losses in the home country, while production and job gains appear only in the...

The paper aims to verify the existence of the Flying Geese Model (FGM) in the case of inward FDI in Central European Countries (CECs) which are new EU member states; more precisely, to find out in what way and to what extent FDI has contributed to catching up, i.e. to the restructuring process...

Romania has experienced a drawn-out transformation process and received relatively low amounts of foreign direct investment (FDI). But it has become competitive in labour-intensive manufacturing industries through the integration into European company networks by processing trade. The country...

Since the late 1990s investors have been faced with new challenges due to changing locational characteristics in the Central European transition countries. Export demand became the main driving force of manufacturing FDI as opposed to local-market penetration in earlier years. In addition,...

This paper applies a gravity model to foreign direct investment (FDI) stocks in five countries of Southeast Europe from nine selected Western European source countries, using five countries of Central Europe as a control group. Basic elements of the economic theory on FDI are shortly reviewed,...

This paper investigates theoretically and empirically firms' productivity ranking among traditional horizontal foreign direct investment (HFDI), pure platform FDI (PFDI), and complex platform FDI (CFDI). Using data on Japanese outward FDI, we define firms conducting HFDI or PFDI as those...

Research on multinational firms’ activity has been conducted widely since late 1980s. The literature is differentiated into three types: horizontal FDI, vertical FDI, and three-country FDI, represented by export platform FDI. There are other methods of differentiation of the literature by...