Investire in Italia? Risultati di una recente indagine empirica
AbstractDuring the past decade all industrial countries attracted sizeable inflows of foreign direct investment (FDI), excluding Italy and Japan: this fact has been interpreted as evidencing a deterioration in ItalyÂ’s structural competitiveness. This paper presents the results of a survey conducted by the Bank of Italy through its net of foreign representative offices, aimed at identifying the main factors that influenced the countryÂ’s attractiveness of FDI in the most recent years. The first section contains a brief survey of the literature on factors of attraction and obstacles to FDI. ItalyÂ’s position vis-Ã -vis other advanced countries is examined in the light of a wide variety of indicators: these latter include macroeconomic, qualitative and structural variables gathered from various sources (as well as other indicators expressly built for this paper), which are meant to outline circumstances relevant to different FDI strategies (Â“horizontalÂ”, Â“verticalÂ”, and Â“regionalÂ”). Italy enjoys two major Â“localization advantagesÂ”, namely, (1) a large, although somewhat stagnant domestic market, and (2) low unit labor costs, comparable to those prevailing in other Â“peripheralÂ” European countries such as Spain, Portugal and Greece. In the backdrop of a general improvement of ItalyÂ’s qualitative and institutional indicators in recent years, one of the major obstacles to FDI in Italy pertains to the continuing low quality of its transport and product distribution infrastructuresÂ–a circumstance that cannot alone explain the very low level of FDI inflows. Another major impediment is represented by the dominance of small- and medium-sized enterprises in the Italian industry. On the one hand, this dimensional factor has been associated with the diffusion of ownership structures hostile to foreign mergers and acquisitions (M&A, the prevailing type of FDI in recent years); on the other hand, it may have clashed with the preferences of international investors, which are skewed towards the acquisition of medium- and large-sized enterprises. In either way, this circumstance may have strengthened the negative effects of Â“environmental barriersÂ” that remain elevated anyhow in our country. The results of the survey are presented in the second section. The survey confirms some of the countryÂ’s improvements mentioned earlier; however, it also confirms the perception, on the part of foreign investors, of continuing institutional and structural backwardness, as well as the importance attached by these investors to such factors while formulating their investment plans.
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Bibliographic InfoPaper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 491.
Date of creation: Mar 2004
Date of revision:
investimenti diretti e loro determinanti; fusioni e acquisizioni internazionali; competitivita' strutturale;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - General
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
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