To serve foreign markets, firms can either export or set up a local subsidiary through horizontal Foreign Direct Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important...

This paper introduces the EUREGIO database: the first time-series (annual, 2000-2010) of global IO tables with regional detail for the entire large trading bloc of the European Union. The construction of this database, which allows for regional analysis at the level of so-called NUTS2 regions,...