German foreign direct investment in the Czech Republic
Abstract
"'Especially less developed and transition countries try to attract foreign direct investments (FDI) as drivers for growth and economic development. There is, however, evidence that the positive externalities of FDI are spatially limited to the host regions of FDI. Thus, the location of FDI may contribute to the emergence and the reinforcement of regional disparities. For both the home and the host country of FDI, the internationalisation of companies is therefore an important regional policy issue.<br> To contribute to the literature on firm internationalisation and FDI location, this thesis focuses on the special case of Germany and the Czech Republic. With the fall of the Iron Curtain in 1989 it was possible for the first time for German companies to invest in the formerly closed economy of the Czech Republic. The significantly lower labour costs combined with spatial proximity made the Czech Republic an attractive target country for German investors: The Czech Republic is, closely followed by Poland, the most important host country for German FDI among the Central and Eastern European Countries; and Germany is - together with the Netherlands and Austria - the most important investor in the Czech Republic. Thus, FDI from Germany to the Czech Republic is of great relevance for both countries.<br> This dissertation gives deeper insights into these FDI relations by shedding light on the regional distribution of FDI and on the types of FDI. The empirical analyses are based on a unique dataset that comprises the total population of German parent and Czech affiliated companies that were active in 2010: the IAB-ReLOC dataset.<br> " (Author's abstract, IAB-Doku) ((en))<br> Contents:<br> - Research background<br> - Unit nonresponse at the firm level: a cross-border analysis using the IAB-ReLOC data<br> - Regional determinants of German FDI in the Czech Republic: new evidence on the role of border regions<br> - Location choice of German multinationals in the Czech Republic: the importance of agglomeration economies<br> - Size of foreign direct investment and firm characteristics
Cite article
Hecht, V. (2019): German foreign direct investment in the Czech Republic. An Analysis of regional determinants and investment motives using the IAB-ReLOC Data. Regensburg, 127 p.