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TOWARD A SYNTHESIS OF MICRO AND MACRO FACTORS THAT INFLUENCE FOREIGN DIRECT INVESTMENT LOCATION CHOICE

Bo Nielsen, Christian Asmussen and Anthony Goerzen

Introduction

Recent evidence suggests that multinational corporations (MNCs) pay increasing attention to sub-national locational factors at the state, municipality, and city level when considering a suitable foreign direct investment (FDI) site (Cheng, 2007). While macro-level theories of economic agglomeration and institutions have provided insights into this phenomenon, additional guidance from Economic Geography and urban economics would provide a fuller picture of sub-national variation in FDI location attractiveness. Since MNCs look for specific geographic locations that enhance ...

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