guest ::
| Home > Reports > Research reports > Regional distribution of German-Czech multinationals on the domestic market |
Original title:
Regional distribution of German-Czech multinationals on the domestic market
Authors: Moritz, M. ; Münich, Daniel ; Schäffler, J. ; Srholec, Martin
Document type: Research reports
Year: 2012
Language: eng
Series: CERGE-EI discussion paper series, volume: 2012 - 218
Abstract: The article deals with the domestic location of German multinational firms which have affiliates in the Czech Republic. Due to the common border the Czech Republic represents an attractive target country for both vertical and horizontal direct investments. On the one hand, the still existing wage gap offers the opportunity to offshore activities abroad by reason of cost advantages. On the other hand, the increasing purchasing power of Czech customers provides favorable chances to acquire a new market. On the basis of a register of firms made available by the German-Czech Chamber of Industry and Commerce we present findings on the growing economic integration between the two countries. Almost 80% of the headquarters of German investors are located in the four federal states Bavaria, Baden-Wuerttemberg, Hesse and North Rhine-Westphalia. The eastern German New Laender are far less engaged in investments in the neigh-boring country. We use count data models in order to account for the distribution of the dependent variable, i.e. the number of investors in the German domestic regions. Controlling for several economic factors it can be concluded that the headquarters of German multinationals investing in the Czech Republic are preferably located in areas with high regional GDP. The distance to the common border plays an important role for the decision to enter the Czech market. In addition, regions that are situated directly at the German-Czech border are involved at an above-average rate in foreign direct investment. Thereby, location patterns differ between manufacturing firms and both trading and service companies.
Keywords: economic integration; foreign direct investment; multinational firms
Project no.: CEZ:AV0Z70850503 (CEP), OC09017 (CEP)
Funding provider: GA MŠk
Institution: Economics Institute AS ČR (web)
Document availability information: Fulltext is available at the institute of the Academy of Sciences.
Original record: http://hdl.handle.net/11104/0185443
Permalink: http://www.nusl.cz/ntk/nusl-124447
The record appears in these collections:
Research > Institutes ASCR > Economics Institute
Reports > Research reports
Authors: Moritz, M. ; Münich, Daniel ; Schäffler, J. ; Srholec, Martin
Document type: Research reports
Year: 2012
Language: eng
Series: CERGE-EI discussion paper series, volume: 2012 - 218
Abstract: The article deals with the domestic location of German multinational firms which have affiliates in the Czech Republic. Due to the common border the Czech Republic represents an attractive target country for both vertical and horizontal direct investments. On the one hand, the still existing wage gap offers the opportunity to offshore activities abroad by reason of cost advantages. On the other hand, the increasing purchasing power of Czech customers provides favorable chances to acquire a new market. On the basis of a register of firms made available by the German-Czech Chamber of Industry and Commerce we present findings on the growing economic integration between the two countries. Almost 80% of the headquarters of German investors are located in the four federal states Bavaria, Baden-Wuerttemberg, Hesse and North Rhine-Westphalia. The eastern German New Laender are far less engaged in investments in the neigh-boring country. We use count data models in order to account for the distribution of the dependent variable, i.e. the number of investors in the German domestic regions. Controlling for several economic factors it can be concluded that the headquarters of German multinationals investing in the Czech Republic are preferably located in areas with high regional GDP. The distance to the common border plays an important role for the decision to enter the Czech market. In addition, regions that are situated directly at the German-Czech border are involved at an above-average rate in foreign direct investment. Thereby, location patterns differ between manufacturing firms and both trading and service companies.
Keywords: economic integration; foreign direct investment; multinational firms
Project no.: CEZ:AV0Z70850503 (CEP), OC09017 (CEP)
Funding provider: GA MŠk
Institution: Economics Institute AS ČR (web)
Document availability information: Fulltext is available at the institute of the Academy of Sciences.
Original record: http://hdl.handle.net/11104/0185443
Permalink: http://www.nusl.cz/ntk/nusl-124447
The record appears in these collections:
Research > Institutes ASCR > Economics Institute
Reports > Research reports
Record created 2012-10-03, last modified 2021-11-24