Inward foreign direct investments in Germany

This study assesses the determinants of locational choice of foreign investors at the level of German Administrative Regions. To begin with, a conditional logit model is employed to estimate the relative probability of choosing a certain location, by evaluating all the regressors in play. Second, a nested logit model is used, since it relaxes the assumption about the perfect substitutability among East and West German Regions. The FDI data from Financial Times gather the information about the crossborder Greenfield investments available from 2003 to 2018.