Offshoring Location: Case of European Transition and Post-Transition Economies

Abstract

In this paper we present an empirical investigation of location patterns of various FDI investment projects in European transition and post-transition economies in recent decade. We also present major differences between locations in terms of FDI location patterns, and show the importance of various factors affecting the location of different activities. Our analysis indicates that FDI locations in Europe follow the flying geese patterns. We also indicate that the most important FDI location factors in European transition and post-transition economies are: population and level of infrastructure development, the size of the economy, level of transition, and the EU membership.