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

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  • 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
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    foreign direct investment; geographical indications; regional development; territorial policy; European Union; European Union’s Horizon 2020 Research and Innovation Programme H2020 project BATModel [grant agreement number 861932] and the PON “Ricerca e Innovazione 2014–2020—Azione IV.6. Contratti di ricerca su tematiche Green”; D.M. 1062/2021; Ministero dell’Università e della Ricerca. This research was also funded by UK Research and Innovation (UKRI) under the UK government’s Horizon Europe funding guarantee [grant number 10041284]. This work is also part of a project that has received funding from the European Union’s Horizon Europe Programme [Grant agreement No. 101061104- ESSPIN-HORIZON-CL2-2021-TRANSFORMATIONS-01];
    All these 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

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