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Moreover, FDI attraction can be increasingly important for the development of small economies, by allowing them to benefit from the external knowledge provided by the foreign firms, absorb new knowledge and finally catch up with the leading countries. The attraction of FDI in a rather small economy of the European South like Greece, can be a vital tool for enhancing economic development and increasing productivity. In addition the establishment of foreign subsidiaries in the subnational Greek market can be of greater importance due the fact that foreign firms pay attention to locational specificities when they decide where to locate. Hence, the attraction of FDI at the regional level can potentially boost the economic development of these areas and therefore, it can play an important role for the implementation of regional development policy. In this study, we focus on analyzing the factors that affect FDI location in the Greek regions. Greece is currently examining the support of policies aiming to attract foreign investors in order to revitalize the economy and tackle the consequences of the financial crisis and thus it is vital

THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE GREEK REGIONS