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Location choices of Chinese greenfield investments across EU regions: The role of industry and country-of-origin agglomerations

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  • Yifei Wang

    (Utrecht University)

  • Andrea Ascani

    (Gran Sasso Science Institute)

  • Carolina Castaldi

    (Utrecht University)

Abstract

We model the impact of public housing supply on local development by using a spatial equilibrium model with a “share-altering†technological shift from agriculture to manufacturing. The model shows that a larger local availability of houses triggers greater population growth and, consequently, industrialization. It also suggests that these effects are stronger in places that exhibited, prior to the public housing plan, relatively higher population density. These implications are broadly confirmed by an empirical evaluation of the INA-Casa plan, a program implemented by the Italian government in the aftermath of WWII.

Suggested Citation

  • Yifei Wang & Andrea Ascani & Carolina Castaldi, 2021. "Location choices of Chinese greenfield investments across EU regions: The role of industry and country-of-origin agglomerations," Discussion Paper series in Regional Science & Economic Geography 2021-10, Gran Sasso Science Institute, Social Sciences, revised Jul 2021.
    • Handle: RePEc:ahy:wpaper:wp21
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    More about this item

    Keywords

    industry agglomeration; country-of-origin; agglomeration; multinational enterprises; foreign direct investment; China;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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