Do friends follow each other? FDI network effects in Central Europe

Gábor Békés, Márta Bisztray

    Research output: Working paper/PreprintDiscussion paper

    Abstract (may include machine translation)

    A great deal of multinationals receive a bundle of hidden or cash subsidizes upon investing in a foreign country. Policymakers often argue that a subsidy today will help locate friends of the investor later on. Using extensive data on FDI investments, we analyze such patterns. In particular, we investigate if co-location is more frequent among connected firms such as members of business groups as well as firms sharing similar background. Focusing on investments into Central and Eastern European countries we find evidence of co-location pattern of connected firms.
    Original languageEnglish
    Place of PublicationBudapest
    PublisherInstitute of Economics, Centre for Economic and Regional Studies
    Number of pages32
    ISBN (Print)9786155754067
    StatePublished - 2017

    Publication series

    NameMűhelytanulmányok [Discussion Papers], ISSN 1785-377X ; MT-DP – 2017/19.

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