FDI Localization, Wage and Urbanization in Central Europe

Behname, Mehdi
Publication date: 
JEL codes: 
F21 - International Investment; Long-Term Capital Movements, F43 - Economic Growth of Open Economies.
This paper studies the impacts of urbanization and wage on foreign direct investment (FDI) in Central Europe. This paper applies the panel data model for study of urbanization and FDI in Central Europe selected countries. We consider Central Europe selected countries over the period 1992-2009. Our estimation shows the urbanization has positive impact on attraction of FDI. We find that human capital and economic growth (market potential) are favorable for FDI flows. Distance has negative effect on FDI. Economic risk (inflation) and increasing in wage level also have negative impact on foreign direct investment.
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