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What drives European multinationals to the EU neighbouring countries? A mixed methods analysis of Italian investment strategies

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Listed:
  • Ascani, Andrea
  • Crescenzi, Riccardo
  • Iammarino, Simona

Abstract

This paper aims to investigate the economic integration between the European Union and its neighbouring countries by exploring the location drivers of Italian Multinational Enterprises (MNEs) in 33 destination countries including the New Member States of the European Union (NMs) and the European Neighbouring countries (NCs). The paper compares market- and efficiency-seeking motivations with asset-seeking strategies. The analysis is based on a mixed-method approach. The quantitative analysis assess the location determinants of 518 Italian MNEs that invested in the area in the years 2003-2008, while qualitative information on strategic location decisions is collected by means of in-depth interviews with executives in two of the largest Italian MNEs active in the region. Market-seeking considerations are still predominant drivers of location decisions in EU Neighbouring Countries together with resource-seeking motivations. However, different MNEs develop diversified strategies to increase their access to these areas which are of increasing interest for global investors.

Suggested Citation

  • Ascani, Andrea & Crescenzi, Riccardo & Iammarino, Simona, 2016. "What drives European multinationals to the EU neighbouring countries? A mixed methods analysis of Italian investment strategies," LSE Research Online Documents on Economics 64862, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:64862
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    File URL: http://eprints.lse.ac.uk/64862/
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    References listed on IDEAS

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    Cited by:

    1. Riccardo Crescenzi & Simona Iammarino, 2016. "Global Investments and Regional Development Trajectories: the Missing Links," LEQS – LSE 'Europe in Question' Discussion Paper Series 118, European Institute, LSE.

    More about this item

    Keywords

    European Union; European Neighbourhood Policy (ENP); multinationals; FDI;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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