The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results
AbstractThis 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.
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Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 92 (2002)
Issue (Month): 4 (July-August)
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Find related papers by 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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