Location choice of German multinationals in the Czech Republic

Abstract

"This paper analyzes the location choice of German investors in the Czech Republic based on a unique dataset covering all Czech companies with a German equity holder. Using a nested logit approach the impact of agglomeration economies, labour market conditions and distance on location choice is investigated. The main result of the paper is that apart from a low distance to the location of the parent company the attractiveness of a Czech district for German investors is mainly driven by agglomeration economies. Besides localization economies the agglomeration of German companies in a region plays a decisive role. The importance of labour market characteristics differs between investment sectors, sizes and periods." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

Cite article

Hecht, V. (2017): Location choice of German multinationals in the Czech Republic. The importance of agglomeration economies. In: Economics of Transition, Vol. 25, No. 4, p. 593-623. DOI:10.1111/ecot.12131