Geography matters: Kohonen classification of determinants of foreign direct investment in transition economies.

Abstract

This exploratory investigation examines the extent to which non-spatial determinants of foreign direct investment (FDI) organize themselves in a manner that mimics the spatial proximity of twenty-five Eurasian transition economies. The Kohonen algorithm is used to create a self-organizing map (SOMs) of a data place that features vectors of twenty-one socioeconomic variables. In this analysis, clusters come up among the Central European, Balkan, Baltic, and Caucasus/Central Asian regions, leaving Russia as a regional outlier. through introducing SOMs to the discussion of FDI and the