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Regional Policy and Greenfield Investments in German Districts

Erasmus Happiness Economics Research Organisation (EHERO) and Department of Applied Economics, Erasmus University Rotterdam, 3062 Rotterdam, The Netherlands
Department of Organisation, Open University of the Netherlands, 6419 Heerlen, The Netherlands
Department of Public Health and Primary Care, LUMC Campus Den Haag, LUMC, Leiden University, 2595 Den Haag, The Netherlands
Institute of Geography and Geology, University of Greifswald, 17489 Greifswald, Germany
Author to whom correspondence should be addressed.
Academic Editor: Justus H. H. Wesseler
Received: 4 May 2021 / Revised: 7 June 2021 / Accepted: 24 June 2021 / Published: 28 June 2021
Using data on greenfield investment in German districts from 2003 to 2010, we examine how regional development policies affect the decision of multinational corporations to locate facilities in Germany. We are interested in whether regional development policies accumulate to increase the attractiveness of a region and whether some policies are necessary to attract foreign investors. Applying count data models and geographic weighted regression, the results indicate that, on average, regional development policies increase the attractiveness of German districts for multinational firms. We find that place-based policies have the strongest effect on investments in the East German lagging regions. However, policies predominantly attract standardised types of investments that require considerable capital investments but not specialised location advantages. View Full-Text
Keywords: regional policy; greenfield FDI; Germany regional policy; greenfield FDI; Germany
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MDPI and ACS Style

Burger, M.J.; Schalk, J.; Schiller, D.; Stavropoulos, S. Regional Policy and Greenfield Investments in German Districts. Urban Sci. 2021, 5, 51.

AMA Style

Burger MJ, Schalk J, Schiller D, Stavropoulos S. Regional Policy and Greenfield Investments in German Districts. Urban Science. 2021; 5(3):51.

Chicago/Turabian Style

Burger, Martijn J., Jelmer Schalk, Daniel Schiller, and Spyridon Stavropoulos. 2021. "Regional Policy and Greenfield Investments in German Districts" Urban Science 5, no. 3: 51.

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