GEOGRAPHICAL CONCENTRATION OF FOREIGN DIRECT INVESTMENT IN ECONOMIC THEORY

Authors

  • Anna Krajewska

DOI:

https://doi.org/10.58246/sjeconomics.v39i4.9

Keywords:

foreign direct investment, geographical concentration, classical location factors

Abstract

The purpose of this article is to review the classical theories on the location of foreign direct investment. Location theory assumes that a firm's production costs and revenues depend on its location. With the first classical business location theories, identifying business location factors has become an important research issue. The most important feature of space influencing location decisions is geographical proximity, contributing to cost reduction and agglomeration benefits.

Published

2020-12-31

Issue

Section

Article