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The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results


  • Roberto Basile

    () (ISAE, Roma)


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.

Suggested Citation

  • Roberto Basile, 2002. "The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results," Rivista di Politica Economica, SIPI Spa, vol. 92(4), pages 61-92, July-Augu.
  • Handle: RePEc:rpo:ripoec:v:92:y:2002:i:4:p:61-92

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    References listed on IDEAS

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    5. Sandro Trento & Massimo Warglien, 2001. "Nuove tecnologie e cambiamenti organizzativi: alcune implicazioni per le imprese italiane," Temi di discussione (Economic working papers) 428, Bank of Italy, Economic Research and International Relations Area.
    6. Jean Gabszewicz & Alessandro Turrini & Jean-Claude Berthlemy, 1999. "Workers' Skills and Product Selection," Revue Économique, Programme National Persée, vol. 50(3), pages 383-391.
    7. David H. Autor, 2001. "Wiring the Labor Market," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 25-40, Winter.
    8. Bruno Contini, 2000. "Job Changes and Wage Dynamics," LABORatorio R. Revelli Working Papers Series 5, LABORatorio R. Revelli, Centre for Employment Studies.
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    10. Acemoglu, Daron & Pischke, Jorn-Steffen, 2000. "Certification of training and training outcomes," European Economic Review, Elsevier, vol. 44(4-6), pages 917-927, May.
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    Cited by:

    1. Daniele, Vittorio, 2007. "Criminalità e investimenti esteri. Un’analisi per le province italiane
      [The effect of organized crime on Foreign Investments. An Empirical Analysis for the Italian Provinces]
      ," MPRA Paper 6417, University Library of Munich, Germany.
    2. Vittorio, Daniele, 2009. "Organized crime and regional development. A review of the Italian case," MPRA Paper 16547, University Library of Munich, Germany.
    3. Roberto Basile & Luigi Benfratello & Davide Castellani, 2005. "Attracting Foreign Investments in Europe - are Italian Regions Doomed?," ERSA conference papers ersa05p148, European Regional Science Association.
    4. Vittorio, Daniele & Ugo, Marani, 2008. "Organized Crime and Foreign Direct Investment: the Italian Case," MPRA Paper 7217, University Library of Munich, Germany.
    5. Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2001. "Regional inequalities and cohesion policies in the european union," ISAE Working Papers 23, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    6. Raffaello Bronzini, 2004. "Foreign Direct Investment and Agglomeration: Evidence from Italy," ERSA conference papers ersa04p321, European Regional Science Association.
    7. Roberto Basile & Luigi Benfratello & Davide Castellani, 2005. "Attracting Foreign Direct Investments in Europe: Are Italian Regions Doomed?," Rivista di Politica Economica, SIPI Spa, vol. 95(1), pages 319-319, January-F.
    8. Radhuber, Michael, 2007. "Crescita Economica o Sviluppo Civile? Altre Vie per il Mezzogiorno," MPRA Paper 8037, University Library of Munich, Germany, revised Apr 2008.

    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions


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