The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results
This paper analyses the locational determinants of FDI inflows in Italy. Given the discrete nature of the data (count data), a random-effect negative binomial-regression model is used to test the a priori expectations on the locational determinants of FDI inflows.The results show that the number of new foreign entrants is fostered by the following provincial characteristics: level of infra-structure, demand level, education attainment and prior concentration of manufacturing plants (in particular, of foreign-owned manufacturing plants). The results also confirm that a high labour cost hinders foreign entry.
Volume (Year): 92 (2002)
Issue (Month): 4 (July-August)
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