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The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choices

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  • Katiuscia Lavoratori
  • Sergio Mariotti
  • Lucia Piscitello

Abstract

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 of knowledge-intensive business services, where the travelling and meeting of professionals allows temporary proximity. Moreover, a spatial econometric extension of the analysis confirms a geographical decay effect for intra-firm co-location with activities located in contiguous provinces.

Suggested Citation

  • Katiuscia Lavoratori & Sergio Mariotti & Lucia Piscitello, 2020. "The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choices," Regional Studies, Taylor & Francis Journals, vol. 54(10), pages 1442-1456, October.
    • Handle: RePEc:taf:regstd:v:54:y:2020:i:10:p:1442-1456
    DOI: 10.1080/00343404.2020.1732901
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    Cited by:

    1. Xuna Zhang & Shijing Nan & Shanbing Lu & Minna Wang, 2022. "Spatial Effects of Air Pollution on the Siting of Enterprises: Evidence from China," IJERPH, MDPI, vol. 19(21), pages 1-18, November.
    2. Nigel Driffield & Katiuscia Lavoratori & Yama Temouri, 2021. "Inward investment and UK productivity," Working Papers 014, The Productivity Institute.
    3. Yifei Wang & Andrea Ascani & Carolina Castaldi, 2023. "Location choices of Chinese greenfield investments across EU regions: the role of industry and country-of-origin agglomerations," Regional Studies, Taylor & Francis Journals, vol. 57(9), pages 1714-1730, September.
    4. Christina Guenther & Maksim Belitski & Nada Rejeb, 2023. "Overcoming the ability-willingness paradox in small family firms’ collaborations," Small Business Economics, Springer, vol. 60(4), pages 1409-1429, April.
    5. Castellani, Davide & Perri, Alessandra & Scalera, Vittoria G., 2022. "Knowledge integration in multinational enterprises: The role of inventors crossing national and organizational boundaries," Journal of World Business, Elsevier, vol. 57(3).
    6. Katiuscia Lavoratori & Davide Castellani, 2021. "Too close for comfort? Microgeography of agglomeration economies in the United Kingdom," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1002-1028, November.
    7. Mikaela Backman & Johannes Hagen & Orsa Kekezi & Lucia Naldi & Tina Wallin, 2023. "In the Eye of the Storm: Entrepreneurs and Well-Being During the COVID-19 Crisis," Entrepreneurship Theory and Practice, , vol. 47(3), pages 751-787, May.

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