Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2014-03-28 Number: 14-041/VII Author-Name: Teodora Dogaru Author-Workplace-Name: A Coruna University, Spain Author-Name: Martijn Burger Author-Workplace-Name: Erasmus University Rotterdam, the Netherlands Author-Name: Bas Karreman Author-Workplace-Name: Erasmus University Rotterdam, the Netherlands Author-Name: Frank van Oort Author-Workplace-Name: Utrecht University, the Netherlands Title: Functional and Sectoral Division of Labour within Central and Eastern European Countries: Evidence from Greenfield FDI Abstract: This discussion paper led to a publication in the Tijdschrfit voor Economische en Sociale Geografie.
In this paper, we analyse the sectoral and functional division of labour in Central and Eastern European (CEE) regions within the convergence debate. By analysing the investment decisions of multinational corporations in 49 NUTS-2 regions across 6 European CEE countries (Poland, Czech Republic, Slovakia, Hungary, Romania, and Bulgaria), we show that capital city regions not only receive more greenfield FDI but also attract a larger variety of investments in terms of sectors and functions. Capital cities are more likely to host higher-end sectors and functions, which provides an explanation for the existing regional disparities within CEE countries. These results highlight the importance of functional and sectoral divisions of labour in the view of regional profiling and contribute to the recent EU Cohesion Policy debate. Classification-JEL: F23, R12, R58 Keywords: regional disparities, Central and Eastern Europe, greenfield FDI File-Url: http://papers.tinbergen.nl/14041.pdf File-Format: application/pdf File-Size: 236081 bytes Handle: RePEc:tin:wpaper:20140041