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FDI and Corporate Geography in the Home Country

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  • Rita Cappariello
  • Stefano Federico
  • Roberta Zizza

Abstract

This paper contributes to the empirical literature on the home-country effects of FDI. Instead of comparing FDI firms to non-FDI firms, we look at what happens within multi-plant FDI firms and we compare headquarters to onheadquarter plants belonging to the same firm. Using survey data on Italian industrial firms, we find that in FDI firms non-headquarter plants show a significantly worse performance in terms of employment and investment than headquarter plants. This suggests that the home-country effects of FDI tend to be biased in favour of headquarters.

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Bibliographic Info

Paper provided by FIW in its series FIW Working Paper series with number 051.

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Length: 26
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:wsr:wpaper:y:2010:i:051

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Postal: FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna
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Related research

Keywords: foreign direct investment; multi-plant firms; employment; Italy;

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  1. Giorgio Barba Navaretti & Davide Castellani & Anne-Célia Disdier, 2006. "How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy," Development Working Papers 215, Centro Studi Luca d\'Agliano, University of Milano.
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