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Outward FDI and Local Employment Growth in Italy

  • Stefano Federico
  • Gaetano Alfredo Minerva

    ()

Using several data sources, we assess the impact of Italy's outward foreign direct investment (FDI) on local employment growth between 1996 and 2001 for 12 manufacturing industries and 103 administrative provinces. Our main result is that, controlling for the local industrial structure and area fixed effects, FDI is associated with faster local employment growth, relatively to the national industry average. We also find that employment in small plants is not negatively influenced by higher levels of FDI. Our findings do not support therefore the idea that FDI is detrimental to local employment growth in the home country.

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File URL: http://hdl.handle.net/10.1007/s10290-008-0148-x
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Article provided by Springer & Institut für Weltwirtschaft (Kiel Institute for the World Economy) in its journal Review of World Economics.

Volume (Year): 144 (2008)
Issue (Month): 2 (July)
Pages: 295-324

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Handle: RePEc:spr:weltar:v:144:y:2008:i:2:p:295-324
DOI: 10.1007/s10290-008-0148-x
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  1. Amil Petrin & James Levinsohn, 2005. "Measuring Aggregate Productivity Growth Using Plant-Level Data," NBER Working Papers 11887, National Bureau of Economic Research, Inc.
  2. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 80-104, March.
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  25. repec:hhs:iuiwop:490 is not listed on IDEAS
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