Journal Article

FDI by Early Movers, Followers and Latecomers: Timing of Entry by German Firms during Transition in the Czech Republic


  • Mühlen
  • H.
  • Nunnenkamp
  • P.
Publication Date

We analyze FDI decisions by German firms with and without affiliates in the Czech Republic at different stages of transition. We find that FDI entry strongly depends on firm productivity immediately after the political and economic regime change, but less so with diminishing uncertainty. Likewise, distance-related transaction costs discourage FDI by latecomers considerably less than FDI by early movers.


JEL Classification

Key Words

  • distance
  • firm-level productivity
  • multinational enterprises
  • timing of FDI