Territorialising globalisation in a post-socialist city: Differences in employment location patterns between foreign and domestic KIBS

Abstract

Foreign investments in knowledge-intensive business services (KIBS) have significantly reshaped the economic and spatial structures of many post-socialist European cities. Despite this, little is known about the intraurban locational behaviour of foreign KIBS and how it differs from their domestic counterparts. This study examines the underlying factors influencing location choices of both foreign and domestic KIBS in Belgrade, a city undergoing complex post-socialist urban economic restructuring. Utilising disaggregated micro-geographic data on KIBS established from 2012 to 2019 and employing a count data model, this analysis reveals key similarities and differences in their employment locational patterns. Both domestic and foreign KIBS are drawn by the economies of localisation, the old CBD, and, to a lesser extent, main streets and commercial areas. However, distinct locational preferences are evident as domestic KIBS are more dispersed, prevalent in densely populated areas and high-status residential neighbourhoods, while foreign KIBS are primarily concentrated in New Belgrade's emerging CBD, characterised by modern commercial infrastructure and better connectivity. These findings contribute to the broader understanding of how globalisation and neoliberal urban policies shape post-socialist cities, highlighting the significant role of foreign KIBS in creating spatially distinct “global city zones” and raising questions about their local embeddedness.