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From local to global, and return: Geographical indications and FDI in Europe

Author

Listed:
  • Crescenzi, Riccardo
  • De Filippis, Fabrizio
  • Giua, Mara
  • Salvatici, Luca
  • Vaquero†Piñeiro, Cristina

Abstract

The geographical indication (GI) scheme of the European Union guarantees visibility and protection to high†quality agri†food products associated with a demarcated region of origin. This paper estimates the impact of the scheme in attracting agri†food foreign direct investment (FDI) in European NUTS3 regions, using a novel dataset and a generalized propensity score matching approach. Areas endorsed with GIs attract more FDI in agri†food†related activities than their non†GI counterparts. Positive effects, estimated for FDI inflows, related job creation and inter†sectoral spillovers on local employment, involves territories with lower institutional quality.

Suggested Citation

Handle: RePEc:eee:paresc:v:102:y:2023:i:5:p:985-1007
DOI: 10.1111/pirs.12758
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JEL classification:

  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
  • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
  • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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