IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/120408.html

From local to global, and return: geographical Indications and FDI in Europe

Author

Listed:
  • Crescenzi, Riccardo
  • De Filippis, Fabrizio
  • Giua, Mara
  • Salvatici, Luca
  • Vaquero Pineiro, Cristina

Abstract

The geographical indication (GI) scheme of the European Union guarantees visibility and protection to high-quality agri-food products associated with a demarcated region of origin. This paper estimates the impact of the scheme in attracting agri-food foreign direct investment (FDI) in European NUTS3 regions, using a novel dataset and a generalized propensity score matching approach. Areas endorsed with GIs attract more FDI in agri-food-related activities than their non-GI counterparts. Positive effects, estimated for FDI inflows, related job creation and inter-sectoral spillovers on local employment, involves territories with lower institutional quality.

Suggested Citation

  • Crescenzi, Riccardo & De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero Pineiro, Cristina, 2023. "From local to global, and return: geographical Indications and FDI in Europe," LSE Research Online Documents on Economics 120408, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:120408
    as

    Download full text from publisher

    File URL: https://researchonline.lse.ac.uk/id/eprint/120408/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eugenio Pomarici & Alessandro Corsi & Simonetta Mazzarino & Roberta Sardone, 2021. "The Italian Wine Sector: Evolution, Structure, Competitiveness and Future Challenges of an Enduring Leader," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 259-295, July.
    2. Koen De Backer & Leo Sleuwaegen, 2003. "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(1), pages 67-84, February.
    3. Daniele Curzi & Martijn Huysmans, 2022. "The Impact of Protecting EU Geographical Indications in Trade Agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 364-384, January.
    4. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    5. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914.
    6. Filomena Pietrovito & Alberto Franco Pozzolo & Luca Salvatici, 2016. "Internationalization choices: an ordered probit analysis at industry level," Empirical Economics, Springer, vol. 50(2), pages 561-594, March.
    7. Luisa Menapace & Gian Carlo Moschini, 2014. "Strength of Protection for Geographical Indications: Promotion Incentives and Welfare Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1030-1048.
    8. Osei, Michael J. & Kim, Jaebeom, 2020. "Foreign direct investment and economic growth: Is more financial development better?," Economic Modelling, Elsevier, vol. 93(C), pages 154-161.
    9. Marta Fernández‐Olmos & Isabel Díez‐Vial, 2014. "The Direct or Indirect Exporting Decision in Agri‐food Firms," Agribusiness, John Wiley & Sons, Ltd., vol. 30(2), pages 148-164, March.
    10. M. Huysmans, 2019. "Exporting protection: EU trade agreements, geographical indications, and gastronationalism," Working Papers 19-26, Utrecht School of Economics.
    11. repec:oup:jirelw:v:34:y:2022:i:1:p:93-113. is not listed on IDEAS
    12. Martijn Huysmans, 2022. "Exporting protection: EU trade agreements, geographical indications, and gastronationalism," Review of International Political Economy, Taylor & Francis Journals, vol. 29(3), pages 979-1005, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Regolo, Julie & Gendre, Cédric & Poméon, Thomas, 2025. "Does the geographical indications protection policy encourage more sustainable agriculture in the territories? Moving from claims to empirical evidence," Ecological Economics, Elsevier, vol. 238(C).
    2. Elina De Simone & Mara Giua & Cristina Vaquero-Piñeiro, 2024. "Eat, visit, love. World heritage list and geographical indications: Joint acknowledgement and consistency as drivers of tourism attractiveness in Italy," Tourism Economics, , vol. 30(6), pages 1531-1556, September.
    3. Vaquero-Piñeiro, Cristina & Salvatici, Luca & Zago, Angelo, 2025. "Synergies among ownership forms and cooperating territories: The case of wine," Food Policy, Elsevier, vol. 135(C).
    4. Caravaggio, Nicola & Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2025. "Predicting policy funding allocation with Machine Learning," Socio-Economic Planning Sciences, Elsevier, vol. 98(C).
    5. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2024. "Political favouritism and inefficient management: Policy-makers’ birth town bias in EU quality certifications," Journal of Policy Modeling, Elsevier, vol. 46(3), pages 683-702.
    6. Julie Regolo & Cédric Gendre & Thomas Poméon, 2025. "Does the geographical indications protection policy encourage more sustainable agriculture in the territories? Moving from claims to empirical evidence," Post-Print hal-05234723, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniele Curzi & Martijn Huysmans & Oliver Ken Haase, 2023. "Potable Intellectual Property: WTO TRIPS and EU Geographical Indication Wines," Working Papers 2311, Utrecht School of Economics.
    2. Emlinger, Charlotte & Latouche, Karine, 2022. "Protection of Geographical Indications in Trade Agreements: is it worth it?," 2022: Transforming Global Value Chains, December 11-13, Clearwater Beach, FL 339444, International Agricultural Trade Research Consortium.
    3. De Filippis, Fabrizio & Giua, Mara & Salvatici, Luca & Vaquero-Piñeiro, Cristina, 2022. "The international trade impacts of Geographical Indications: Hype or hope?," Food Policy, Elsevier, vol. 112(C).
    4. Filippis, Fabrizio De & Giua, Mara & Salvatici, Luca & Vaquero-Pineiro, Cristina, 2021. "The International Competitiveness of Geographical Indications: Hype or Hope?," 2021 Conference, August 17-31, 2021, Virtual 315147, International Association of Agricultural Economists.
    5. Karola Schober & Richard Balling & Tobias Chilla & Hannah Lindermayer, 2023. "European Integration Processes in the EU GI System—A Long-Term Review of EU Regulation for GIs," Sustainability, MDPI, vol. 15(3), pages 1-24, February.
    6. Tobias Chilla & Benedikt Fink & Richard Balling & Simon Reitmeier & Karola Schober, 2020. "The EU Food Label ‘Protected Geographical Indication’: Economic Implications and Their Spatial Dimension," Sustainability, MDPI, vol. 12(14), pages 1-21, July.
    7. Martijn Huysmans & D. van Noord, 2021. "The market for lemons from Sorrento and Gouda from Holland. Do geographical indications certify origin and quality?: Do geographical indications certify origin and quality?," Working Papers 2108, Utrecht School of Economics.
    8. Resce, Giuliano & Vaquero-Piñeiro, Cristina, 2023. "Taste of home: Birth town bias in Geographical Indications," Economics & Statistics Discussion Papers esdp23089, University of Molise, Department of Economics.
    9. Weiwen Qian & Yinguo Dong & Yuchen Liu, 2023. "The impact of mutual recognition of geographical indications on the quality upgrading of China’s agricultural exports," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-15, December.
    10. Mara Giua & Luca Salvatici & Cristina Vaquero-Piñeiro & Roberto Solazzo, 2025. "Do Territories with Geographical Indications Trade Better?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(1), pages 31-64, March.
    11. Huysmans, Martijn, 2021. "On Feta and Fetta: Protecting EU Geographical Indications Down Under," 2021 Conference, August 17-31, 2021, Virtual 314978, International Association of Agricultural Economists.
    12. Cristina Vaquero Piñeiro & Daniele Curzi, 2024. "Assessing the role of geographical indications in affecting the quality of imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 653-671, June.
    13. David J. Kuenzel, 2025. "Geographical protections and trade: Product‐level evidence from EU agreements," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(4), pages 1583-1637, November.
    14. Daniele Curzi & Martijn Huysmans & Oliver Ken Haase, 2024. "Potable intellectual property: WTO TRIPS and EU geographical indication wines," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(3), pages 1065-1082, September.
    15. Shuai Shi & Kathy Pain, 2020. "Investigating China’s Mid-Yangtze River economic growth region using a spatial network growth model," Urban Studies, Urban Studies Journal Limited, vol. 57(14), pages 2973-2993, November.
    16. Chunyan Li & Jianmei Gao & Lanqing Ge & Weina Hu & Qi Ban, 2023. "Do Geographical Indication Products Promote the Growth of the Agricultural Economy? An Empirical Study Based on Meta-Analysis," Sustainability, MDPI, vol. 15(19), pages 1-21, October.
    17. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    18. Johan Swinnen & Alessandro Olper & Senne Vandevelde, 2021. "From unfair prices to unfair trading practices: Political economy, value chains and 21st century agri‐food policy," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 771-788, September.
    19. Zhang, Bo & Zhou, Peng, 2021. "Financial development and economic growth in a microfounded small open economy model," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    20. Jin, Shaosheng & Guo, Haiyue & Delgado, Michael S. & Wang, H. Holly, 2017. "Benefit or damage? The productivity effects of FDI in the Chinese food industry," Food Policy, Elsevier, vol. 68(C), pages 1-9.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:ehl:lserod:120408. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.