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Regional determinants of German FDI in the Czech Republic: new evidence on the role of border regions

ABSTRACT Regional determinants of German FDI in the Czech Republic: new evidence on the role of border regions. Regional Studies. Using a unique dataset, the regional distribution of German multinationals and their Czech affiliates is analysed. The investigation focuses on locational factors for joint foreign direct investment (FDI) projects that can only be revealed by taking a home-host country perspective. A light is shed on the strong position of the common border region and its asymmetric interconnectedness. While the Czech border region constitutes an attractive target area for investors from all over Germany, multinational firms in the German border region show a significant preference to invest in Czech regions close by, but not so in the non-border regions in the neighbouring country.