Technology, Human Capital and FDI: Firm Level Evidence for Italy
This paper makes an empirical assessment of Foreign Direct Investment (FDI), by analyzing a large sample of Italian manufacturing enterprises. Firm-level data are derived from the 8th and 9th waves of the Capitalia survey, and they cover the period between 1998 and 2003. Consistently with the theory of multinational enterprises, evidence shows that firms endowed with superior technology and better human capital tend to operate abroad via FDI. These results are robust to different econometric specifications and alternative measures of technology and human capital.
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Volume (Year): 70 (2011)
Issue (Month): 3 (December)
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