While economic factors have been found to explain foreign direct investments (FDI), there is still some ambiguity regarding the decisions on the choice of destination by multinational companies. Studies find considerable evidence to suggest that distance, physical, institutional, and cultural...

We study foreign investment and manufacturing productivity using a large sample of listed and unlisted firms from 34 European countries. Controlling for the business environment, institutional quality, investor protection, corruption, and disclosure quality of both host and foreign investor...