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This paper investigates the role of geographical and temporary proximity in the location and co-location decisions of manufacturing activities by foreign multinational enterprises (MNEs). Empirical analysis shows that foreign MNEs co-locate their new manufacturing plants with their plants already operating in the same manufacturing activity, while geographical proximity exerts a much weaker role when the latter operates in services activities. This is especially true in the case ofdoi:10.6084/m9.figshare.12091023.v1 fatcat:ve3xjvrhu5hwrlwv6tqa3wun3q