Abstract
The main aim of this research is to look at the different degrees of attractiveness of EU sub-national regions from a Korean investors' perspective. Detailed analysis of sub-national variation shows certain features that were not explicit at the national (or state) level analysis. Empirical findings clearly show the striking disparities in economic performance between various sub-national regions within the enlarged ***EU. The findings will confirm that Korean firms never looked at the EU-15 (nor Eastern Europe) as a single location that offered homogenous locational advantages. In conclusion, this research raises concerns about the utility of using only a ‘cost advantage based approach’ when considering locational advantage and investment decisions in the Eastern European regions.