Agglomeration economies and the location of foreign direct investment: A meta‐analysis. (3rd April 2017)

• Record Type: Journal Article
• Authors: Jones, Jonathan
• Is Part Of: Journal of regional science. Volume 57:Number 5(2017)
• Page Start: 731
• Page End: 757
• Publication Date: 2017-04-03
• Subjects: agglomeration economies -- FDI -- industrial location -- meta‐analysis; Economics -- Research -- Periodicals; Regional planning -- Periodicals; 330.072
• DOI: 10.1111/jors.12335
• Languages: English
• ISSNs: 0022-4146

Abstract

Abstract: This paper undertakes a meta‐analysis of the effect of agglomeration economies on foreign direct investment (FDI) location. It finds strong differences in these economies arising from both measurement and study‐specific characteristics. Economies generated from domestic rather than foreign activity have the strongest effects on FDI, with the latter only significant if related to the home country of the investor. Support is also found for studies that identify different sources of agglomeration economies, although this is largely underexplored in the empirical literature. The average agglomeration economies estimate is not influenced by publication bias and indicates genuine effects for agglomeration economies on FDI location choice.