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Heterogeneity and distance. some propositions on how differences across regions, firms and functions affect the role of distance in fdi location decisions

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Abstract

The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. Increasingly, this literature has highlighted the need to consider distance as a multifaceted concept including both spatial and institutional features. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.

Suggested Citation

  • n.d., 2014. "Heterogeneity and distance. some propositions on how differences across regions, firms and functions affect the role of distance in fdi location decisions," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2014(4), pages 81-104.
    • Handle: RePEc:fan:polipo:v:html10.3280/poli2014-004005
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    Keywords

    IDE; multinazionali; distanza; eterogeneit?;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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