Tracking the Van: The role of forward linkages in logistics MNEs' location choices across European NUTS 3 regions

Abstract

AbstractLogistics firms play a crucial role in overcoming time and distance constraints in supply chain management. However, little is known about their location patterns. This paper fills the gap by studying the logistics of multi‐national enterprises' location choices across 380 NUTS 3. Using data on 1777 foreign direct investments (FDIs), our findings reveal that forward linkages with a region's retail and wholesale industry exert a stronger impact than intermediate production demand. Results are robust to the inclusion of standard FDIs' determinants and to controls for spatial dependence. Findings suggest that intersectoral demand from downstream sectors positively affect logistics operators independently from the manufacturing base.