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Can judicial efficiency improve territorial attractiveness to FDI? The Italian experience

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  • Comi, Simona
  • Grasseni, Mara
  • Resmini, Laura

Abstract

This paper explores the role that judicial efficiency may play as a determinant of inward FDI at sub-national level. Italy is an ideal case to deal with this still unexplored issue since the same law apply in all the national territory, but the degree of law enforcement varies considerably across different courts. We found that judicial efficiency affects positively FDI inflows. This result, though heterogeneous across different economic sectors, is robust to different specifications and sample selections. Our results have interesting policy implications, since they highlight the importance of non-targeted FDI policies as factors driving inward flows.

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  • Comi, Simona & Grasseni, Mara & Resmini, Laura, 2021. "Can judicial efficiency improve territorial attractiveness to FDI? The Italian experience," European Journal of Political Economy, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:poleco:v:70:y:2021:i:c:s0176268021000434
    DOI: 10.1016/j.ejpoleco.2021.102043
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    More about this item

    Keywords

    Foreign direct investment; Institutions; Judicial efficiency;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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