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



Appendix

Figure 11: The three European regions: Baden-Württemberg in Germany, Catalunya in Spain and Lombardia in
Italy.

Baden-Württemberg

Baden-Wurttemberg is the third largest Land in Germany. In the industrial sector, Baden-
Württemberg possess 18,2 % of manufacturing plants in Germany. Manufacturing activities contribute
the most to the added value of the country (33%) followed by financial intermediation, renting and
business activity (28,4%). The principal industrial activity of the region is the production of machinery
and vehicle construction (located in particular around Stuttgart) hiring respectively 22,1 % and 19,5%
of workers. Machineries and motor vehicles are the sectors for which the region shows a high
comparative advantage in trade flows, representing the main export flows with 27.224 and 23.616
millions of euro (in 2003), followed by chemical products. (Source: Baden-Württemberg
wirtschaftsministerium).

Catalunya

Catalunya is in the North-East of Spain. The regional imports approximately accounted for
30% of the Spanish imports while exports represented 27, 7% of the total in Spain in 2002. Services
provide the most important contribution to the regional economy (62%) followed by industry (28,1%)
and construction (8,2%). In the same year, the employment rate in Catalunya achieved 9,2 % of the
active population and it was lower than the Spanish rate (11,1%).

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