Poelhekke, Steven; Ploeg, Frederick van der - de Nederlandsche Bank - 2008
suffer from primacy. However, FDI is attracted if surrounding countries have fewer cities, restrictions on international … substantial natural resource exports. Countries also attract more FDI if they have more mediumsized cities and primacy is not too … trade and low market potential (income per capita). We tentatively conclude that cities are important drivers of FDI and …