Evidence on the Determinants of Foreign Direct Investment: The Case of Three European Regions

Box 1 : Macroeconomic variables

FDIPij = Amount of annual per-capita FDI inflows in region i and sector j (millions EURO)

EXPORTPi= Amount of annual per-capita export flows in region i (millions EURO)

ULBVij= Unit labor cost as average compensation of employees over added value for region i and sector j, by year
RPRODUCij=Productivity by region i and sector j as real value added (discounted by the correspondent price index) over
employment , by year

GDPPi= Annual gross domestic product per capita in region i (euro),

FBCFPi=Annual gross fixed capital formation per capita in region i (euro)

Sources:

EUROSTAT

Lombardia: Ufficio Italiano Cambi and Annuario Statistico Lombardia

Catalunya: IDESCAT and Secretaria General del Comercio Exterior

Baden Württemberg: Statistiches Landesamt Baden- Württemberg

Box 2 : Research and technological variables

RDPi= Annual expenditure in research and development per capita in region i (euro)

HCPi= Annual quota of students coursing in universities (as % of total population) in region i

HRSTVi= Number of people (as % of total population) who fulfill the conditions of human resources in science and
technology in region I, by year

Source:

EUROSTAT

Box 3 : Dummies

DAVERAGE: (Catalunya and Baden-Württemberg ) Dummy for investments (by year) whose amount is greater than the
average,

DUM: (Lombardia) Dummy for investments in traditional manufacturing

We run several regressions by applying alternative specifications with the purpose to select the
model which fits the most the real data.

Then, we isolate a group of specifications and we replicate the same regression for the three
different regions. The following three tables present our results:

16

<<   13   14   15   16   17   18   19   >>

More intriguing information