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Heterogeneity of Economic Space: Introduction of the Problem

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Part of the Studies in Economic Transition book series (SET)

Abstract

Although there is a common understanding that almost all industries are somewhat localized, a number of studies measure the localization levels of FDI and its influence on host economies. That relationship between collocating firms and the formation of centers of economic activity within a country influence the location choices of future entrants into that country (von Thünen, 1826, trans, of 1966; Marshall, 1920; Krugman, 1991). Also, so-called “Marshallian factor” market externalities (David and Rosenbloom, 1990), which include capital stock and size of the labor force and markets, strongly contribute to the growth and competitiveness of urban-industrial agglomerations, thereby enhancing the attractiveness of a region to potential foreign investors. Even earlier than Marshall, Adam Smith (1776) spoke of trade impacts on location decisions, suggesting that trade and location are interrelated and have a significant role in regional economic geography.

Keywords

Foreign Direct Investment Foreign Investment Foreign Firm Location Choice Entry Mode 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Arkadiusz Mironko 2014

Authors and Affiliations

  1. 1.The A. Gary Anderson Graduate School of ManagementUniversity of CaliforniaUK
  2. 2.Rotterdam School of ManagementErasmus UniversityNetherlands

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