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The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results

Author

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  • Roberto Basile

    (ISAE, Roma)

Abstract

This paper analyses the locational determinants of FDI inflows in Italy. Given the discrete nature of the data (count data), a random-effect negative binomial-regression model is used to test the a priori expectations on the locational determinants of FDI inflows.The results show that the number of new foreign entrants is fostered by the following provincial characteristics: level of infra-structure, demand level, education attainment and prior concentration of manufacturing plants (in particular, of foreign-owned manufacturing plants). The results also confirm that a high labour cost hinders foreign entry.

Suggested Citation

  • Roberto Basile, 2002. "The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results," Rivista di Politica Economica, SIPI Spa, vol. 92(4), pages 61-92, July-Augu.
    • Handle: RePEc:rpo:ripoec:v:92:y:2002:i:4:p:61-92
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    Citations

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    Cited by:

    1. Daniele, Vittorio, 2007. "Criminalità e investimenti esteri. Un’analisi per le province italiane [The effect of organized crime on Foreign Investments. An Empirical Analysis for the Italian Provinces]," MPRA Paper 6417, University Library of Munich, Germany.
    2. Raffaello Bronzini, 2004. "Foreign Direct Investment and Agglomeration: Evidence from Italy," ERSA conference papers ersa04p321, European Regional Science Association.
    3. Roberto Basile & Luigi Benfratello & Davide Castellani, 2005. "Attracting Foreign Direct Investments in Europe: Are Italian Regions Doomed?," Rivista di Politica Economica, SIPI Spa, vol. 95(1), pages 319-319, January-F.
    4. Vittorio, Daniele & Ugo, Marani, 2008. "Organized Crime and Foreign Direct Investment: the Italian Case," MPRA Paper 7217, University Library of Munich, Germany.
    5. Radhuber, Michael, 2007. "Crescita Economica o Sviluppo Civile? Altre Vie per il Mezzogiorno," MPRA Paper 8037, University Library of Munich, Germany, revised Apr 2008.
    6. Vittorio, Daniele, 2009. "Organized crime and regional development. A review of the Italian case," MPRA Paper 16547, University Library of Munich, Germany.
    7. Roberto Basile & Luigi Benfratello & Davide Castellani, 2005. "Attracting Foreign Investments in Europe - are Italian Regions Doomed?," ERSA conference papers ersa05p148, European Regional Science Association.
    8. Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2001. "Regional inequalities and cohesion policies in the european union," ISAE Working Papers 23, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    9. 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).

    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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