Premium
Functional and Sectoral Division of Labour within C entral and E astern European Countries: Evidence from Greenfield FDI
Author(s) -
Dogaru Teodora,
Burger Martijn,
Karreman Bas,
Oort Frank
Publication year - 2015
Publication title -
tijdschrift voor economische en sociale geografie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 55
eISSN - 1467-9663
pISSN - 0040-747X
DOI - 10.1111/tesg.12093
Subject(s) - multinational corporation , division of labour , economic geography , foreign direct investment , convergence (economics) , variety (cybernetics) , economics , international trade , business , market economy , economic growth , finance , macroeconomics , artificial intelligence , computer science
In this paper, we analyse the sectoral and functional division of labour in C entral and E astern European ( CEE ) regions within the convergence debate. By analysing the investment decisions of multinational corporations in 49 NUTS 2 regions across six European CEE countries ( P oland, C zech R epublic, S lovakia, H ungary, R omania and B ulgaria), 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.