Regional determinants of MNE's location choice in post-transition economies

This article focuses on the impact of agglomeration and labour market factors on the location choice of MNEs in post-transition economies. We compare data from 33 regions in East Germany, the Czech Republic and Poland using a mixed logit model on a sample of 4,343 subsidiaries for the time period between 2000 and 2010. The results show that agglomeration advantages, such as sectoral specialisation as well as a region's economic and technological performance prove to be some of the most important pull factors for FDI in post-transition regions. With respect to access to labour, the results suggest that FDI in post-transition regions is (no longer) only dominated by efficiency seeking behaviour, but also by access to well-qualified labour.