Gravity modelling has been used extensively in analysing trade flows but less so for crossborder investment. Recent theoretical work provides an underpinning for applications to FDI. In this paper we estimate a gravity model to evaluate the potential for increased FDI for a sample of Eastern...

This paper looks at the trade off between investment incentives and exit costs for the location of foreign direct investment (FDI). This issue does not appear to have been tackled in much detail in the literature. The analysis considers the effect of profit taxation (as a measure of investment...

We study the regional location of multinationals in Ireland since the 1970s by focusing on the role played by agglomeration economies and public incentives intent on dispersing industrial activity to the more disadvantaged areas of Ireland. We find that regional policy has only been effective in...