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The impact of foreign direct investment on local regional economies

Cel

The main task of the project is to examine how the location of Foreign Direct Investment (FDI) can affect local economies within countries using extensive firm level panel data for Belgium, Ireland, Spain, and Portugal. In order to enable comparability across these countries and data sets appropriate regional taxonomies will be identified and relevant agglomeration measures defined. At the aggregate and sectoral level trends in the dispersion of FDI and domestic activity will be documented and compared across countries. At the micro-level the key aspect of interest will be how the degree of FDI within regions has affected such factors as indigenous firm start-up, survival, employment growth and productivity, while appropriately controlling for other important factors. The econometric specification will be embedded in and draw upon existing theoretical economic geography and other frameworks. The results will also have implications for economic policy by providing an empirical platform that will give policy makers more information concerning what role FDI can play in encouraging local regional development. Universite catholique de Louvain's CORE has very strong research skills in the areas of regional economics and econometrics. Current members and affiliated members have been and are frontrunners in the new economic geography literature. The principal benefit for the applicant comes from being exposed to this excellent research environment and the collaboration with and advice and evaluation from acknowledged experts in the field. This will help ensure that the research will be of the highest international caliber. Moreover, several researchers within CORE have access to datasets that are key components to the proposed project.

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Koordynator

UNIVERSITE CATHOLIQUE DE LOUVAIN
Wkład UE
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Adres
34,Voie du Roman Pays 34
1348 LOUVAIN-LA-NEUVE
Belgia

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