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International Production in Italy: Firms' Characteristics and Home Country Effects


  • Castellani Davide


This paper carries out a review of the recent literature on the internationalisation of production, with a special focus on the characteristics of Italian firms investing abroad and the effects of international production on the Italian economy. First, it is argued that that firms investing abroad are different than non-internationalized firms. Second, the mechanisms through which international production affects the size and "quality" of the home activities of firms investing abroad are explored. Finally, the analysis focuses on the effects in terms of crowding out, externality and structural change induced by international production on home countries. The paper draws implications for policies towards Italian firms investing abroad.

Suggested Citation

  • Castellani Davide, 2007. "International Production in Italy: Firms' Characteristics and Home Country Effects," L'industria, Società editrice il Mulino, issue 3, pages 487-514.
  • Handle: RePEc:mul:j0hje1:doi:10.1430/25037:y:2007:i:3:p:487-514

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    References listed on IDEAS

    1. Leoncini Riccardo & Montresor Sandro, 2001. "Struttura produttiva e processo innovativo: un'analisi intersettoriale del sistema tecnologico italiano," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 169-206.
    2. repec:fth:harver:1473 is not listed on IDEAS
    3. Mattioli Elvio & Sterlacchini Alessandro, 1998. "Fonti e risultati dell'attività innovativa nell'industria italiana: un'analisi settoriale," L'industria, Società editrice il Mulino, issue 1, pages 49-80.
    4. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    5. Archibugi, Daniele & Cesaratto, Sergio & Sirilli, Giorgio, 1991. "Sources of innovative activities and industrial organization in Italy," Research Policy, Elsevier, vol. 20(4), pages 299-313, August.
    6. Jacques Mairesse & Bronwyn H. Hall, 1996. "Estimating the Productivity of Research and Development: An Exploration of GMM Methods Using Data on French & United States Manufacturing Firms," NBER Working Papers 5501, National Bureau of Economic Research, Inc.
    7. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    8. Trostel, Philip & Walker, Ian & Woolley, Paul, 2002. "Estimates of the economic return to schooling for 28 countries," Labour Economics, Elsevier, vol. 9(1), pages 1-16, February.
    9. Griliches, Zvi, 1986. "Productivity, R&D, and the Basic Research at the Firm Level in the 1970's," American Economic Review, American Economic Association, vol. 76(1), pages 141-154, March.
    10. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    11. Brunello, Giorgio & Miniaci, Raffaele, 1999. "The economic returns to schooling for Italian men. An evaluation based on instrumental variables1," Labour Economics, Elsevier, vol. 6(4), pages 509-519, November.
    12. Destefanis, Sergio, 2000. "Differenziali territoriali di produttività ed efficienza e sviluppo dualistico
      [Territorial differences in productivity and efficiency and Italian dualism]
      ," MPRA Paper 62065, University Library of Munich, Germany.
    13. Francesco Aiello & Valeria Pupo, 2004. "Il tasso di rendimento degli investimenti in ricerca e sviluppo delle imprese innovatrici italiane," Rivista di Politica Economica, SIPI Spa, vol. 94(3), pages 81-118, May-June.
    14. Sterlacchini Alessandro, 2001. "Il contributo delle grandi e delle piccole imprese al progresso tecnologico," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 95-120.
    15. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
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    Cited by:

    1. Valeria Gattai, 2015. "Internationalisation and performance at the firm-level: what we learn from Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 475-509, December.


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