Continuous versus Discrete Representation of Investing Firm Heterogeneity in Modelling FDI Location Decisions
Choice Modelling: The State-of-the-art and The State-of-practice
ISBN: 978-1-84950-772-1, eISBN: 978-1-84950-773-8
Publication date: 15 January 2010
Abstract
This paper applies the mixed logit and the latent class models to analyse the heterogeneity in foreign investment location choices in Central and Eastern Europe. The empirical results show that the responsiveness of the probabilities of choices to invest in a particular location to country-level variables differs both across sectors and across firms of different characteristics. The paper highlights the superiority of the latent class model with regards to the model fit and the interpretation of results.
Acknowledgements
Acknowledgement
The authors are grateful to Professor William Greene for advice on LC modelling techniques.
Citation
Rasciute, S. and Pentecost, E.J. (2010), "Continuous versus Discrete Representation of Investing Firm Heterogeneity in Modelling FDI Location Decisions", Hess, S. and Daly, A. (Ed.) Choice Modelling: The State-of-the-art and The State-of-practice, Emerald Group Publishing Limited, Leeds, pp. 571-592. https://doi.org/10.1108/9781849507738-026
Publisher
:Emerald Group Publishing Limited
Copyright © 2010 Emerald Group Publishing Limited