IDEAS home Printed from
   My bibliography  Save this paper

Italian Multinationals and De-localisation of Production


  • G. Barba Navaretti

    (University of Ancona, Centro Studi Luca d´Agliano, Fondazione Eni Enrico Mattei)

  • Anna M. Falzoni

    (University of Bergamo, CESPRI, Centro Studi Luca d´Agliano)

  • A. Turrini

    (University of Bergamo, CESPRI, Centro Studi Luca d´Agliano)


In this paper we test the firm-specific determinants of delocation to low-wage countries on the part of Italian firms. We collect data through a survey on 167 firms the in mechanics and textile industries. Our data show that in recent years there has been an upsurge in FDI activity by Italian firms, mostly directed to cheap labor countries. Our hypothesis is that investments to cheap labor countries are mainly cost-driven, and undertaken by firms that focus on a low-quality, low-cost strategy. We test this hypothesis through a probit analysis, finding that investments to cheap labor countries are more likely to be of a vertical type, being associated with low local sales abundant employment and high shares of intra-firma trade. For textile, there is also weak evidence that investments to low wage countries are associated with low shares of skilled employment in parent companies.

Suggested Citation

  • G. Barba Navaretti & Anna M. Falzoni & A. Turrini, 1999. "Italian Multinationals and De-localisation of Production," Development Working Papers 126, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:126

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Giorgio Barba Navaretti & Anna Falzoni & Alessandro Turrini, 2001. "The decision to invest in a low-wage country: Evidence from Italian textiles and clothing multinationals," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(4), pages 451-470.

    More about this item


    foreign direct investments; production de-localisation; product differentiation;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csl:devewp:126. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chiara Elli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.