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1 – 2 of 2Simona Rasciute and Eric J. Pentecost
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…
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.