Regional Social Context and FDI. An Empirical Investigation on Chinese Acquisitions in Europe

This article ponders the varying economic, technical, and social conditions that might illuminate the different strengths of European regions in attracting foreign direct investment (FDI). It tries to identify whether the presence of regional differences affects the location of multinational enterprises. The authors develop an empirical model using data on Chinese brownfield investments in European regions. The results confirm that social context affects FDI location choices, though heterogeneous effects relating to technological differences exist. These findings increase policymakers awareness about the possible spillover and backlash effects of social policies as well as FDI attraction initiatives.

This publication originally appeared as Lauretta Rubini, Chiara Pollio, Francesca Spigarelli, Ping Lv, “Regional Social Context and FDI. An Empirical Investigation on Chinese Acquisitions in Europe,” Structural Change and Economic Dynamics, Vol. 58 (September 2021), pp. 402-415. Copyright remains with the original holders.