This paper examines the role played by agglomeration economies as location determinants of regional foreign direct investment in manufacturing. The analysis reveals that foreign direct investment location is dependent on specific industry traits, and that agglomeration economies appear as the...

In recent years, and for the first time in Spanish economic history, outward direct investment flows outweigh inward flows. Catalan manufacturing not only mirrors this pattern, but also represents a high proportion of all Spanish manufacturing outward direct investment. In this paper, we analyse...

This paper examines the locational determinants of foreign direct investment (FDI) in manufacturing activities in the regions of Spain, with particular attention to agglomeration factors, and the effect of these determinants on three separate industries. The analysis reveals that agglomeration...

We address the role of labor cost differentials for national tax policies. Using a simple theoretical framework with two countries competing for a mobile firm, we show that in a bidding race for FDI, it is optimal for governments to compensate firms for international labor cost differentials....