Abstract
Although there is a common understanding that almost all industries are somewhat localized, a number of studies measure the localization levels of FDI and its influence on host economies. That relationship between collocating firms and the formation of centers of economic activity within a country influence the location choices of future entrants into that country (von Thünen, 1826, trans, of 1966; Marshall, 1920; Krugman, 1991). Also, so-called “Marshallian factor” market externalities (David and Rosenbloom, 1990), which include capital stock and size of the labor force and markets, strongly contribute to the growth and competitiveness of urban-industrial agglomerations, thereby enhancing the attractiveness of a region to potential foreign investors. Even earlier than Marshall, Adam Smith (1776) spoke of trade impacts on location decisions, suggesting that trade and location are interrelated and have a significant role in regional economic geography.
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© 2014 Arkadiusz Mironko
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Mironko, A. (2014). Heterogeneity of Economic Space: Introduction of the Problem. In: Determinants of FDI Flows within Emerging Economies. Studies in Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9781137372161_2
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DOI: https://doi.org/10.1057/9781137372161_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-47601-5
Online ISBN: 978-1-137-37216-1
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