their Geographical Neighbourhood
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Location Strategies of EU-15 MNEs in the European Neighborhood<br />
Appendix A<br />
Table A.1: Variable definitions and sources<br />
Variable Description Source<br />
Location Choice<br />
Dependent<br />
Dummy indicating location choices among 23 destination<br />
countries<br />
Independent<br />
Economic Institutions<br />
Labour Market<br />
Regulation<br />
Index (0-10) indicating the flexibility of labour market in<br />
location j.<br />
Business<br />
Index (0-10) indicating the administrative and<br />
Regulation bureaucratic burdens for business in location j.<br />
Protection or Index (0-10) indicating the extent to which government<br />
Property Rights protects property rights in location j.<br />
Legal<br />
Index (0-10) indicating the extent to which contracts are<br />
Enforcement of enforced by courts in location j.<br />
Contracts<br />
Government<br />
expenditure<br />
Percentage of general government final consumption<br />
expenditure on GDP in location j.<br />
FDi Markets<br />
Fraser<br />
Institute<br />
Fraser<br />
Institute<br />
Fraser<br />
Institute<br />
Fraser<br />
Institute<br />
Demand<br />
Ln Market Size t-1 Log of GDP of destination j at time t-1. WDI<br />
Ln Market Log of the sum of distance-weighted GDP of all countries WDI / CEPII<br />
Potential t-1 c within 1,000km from location j at time t-1, i for each c≠j.<br />
Trade Costs<br />
Geogr. Distance Physical distance measured in km. CEPII<br />
Geogr. Contiguity Dummy equal to 1 if country of origin r and destination j CEPII<br />
are contiguous.<br />
Labour Market<br />
Ln Education Log of the ratio between secondary school age population UNESCO<br />
Level<br />
and total population in location j.<br />
Ln Average Wage Log of per capita GDP in location j. WDI<br />
Agglomeration<br />
Urban<br />
Percentage of urban population on total population.<br />
WDI<br />
Agglomeration<br />
National<br />
Ownership<br />
Culture<br />
Official Language<br />
Unofficial<br />
Language<br />
Common<br />
Colonizer after<br />
1945<br />
Colonial Link after<br />
1945<br />
Same Country<br />
Stock of investment in location j from the same country of<br />
origin r of firm i.<br />
Dummy equal to 1 if country of origin r and location j<br />
share an official common language.<br />
Dummy equal to 1 if country of origin r and location j<br />
share an unofficial common language.<br />
Dummy equal to 1 if country of origin r and location j had<br />
a common colonizer after 1945.<br />
Dummy equal to 1 if country of origin r and location j had<br />
a colonial tie after 1945.<br />
Dummy equal to 1 if country of origin r and location j<br />
have been part of the same country in the past.<br />
WDI<br />
FDi Markets<br />
CEPII<br />
CEPII<br />
CEPII<br />
CEPII<br />
CEPII<br />
50
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