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Things change. Foreign market penetration and firms’ behaviour in industrial districts: an empirical analysis


  • Roberto Basile

    () (ISAE - Institute for Studies and Economic Analyses)

  • Anna Giunta

    (University of Rome 3)


With the introduction of information and communication technology, a brisker pace in market integration and the adoption of a fixed exchange rate, some changes seem to have occurred in the determinants of Italian industrial districts firms' competitive advantages. In this paper we use the overall degree of foreign market penetration as a performance variable and estimate which are its determinants in two different periods, 1997 and 2000, using a sample of 707 manufacturing firms located in industrial districts. The results of our ordered probit analyses suggest that indeed some “traditional” determinants are losing their relative weight, while new ones are gaining the scene.

Suggested Citation

  • Roberto Basile & Anna Giunta, 2005. "Things change. Foreign market penetration and firms’ behaviour in industrial districts: an empirical analysis," ISAE Working Papers 48, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  • Handle: RePEc:isa:wpaper:48

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    References listed on IDEAS

    1. Basile, Roberto, 2001. "Export behaviour of Italian manufacturing firms over the nineties: the role of innovation," Research Policy, Elsevier, vol. 30(8), pages 1185-1201, October.
    2. Roberto Basile & Anna Giunta & Jeffrey Nugent, 2003. "Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 1-24, August.
    3. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    4. Sandro Trento & Massimo Warglien, 2001. "Nuove tecnologie e cambiamenti organizzativi: alcune implicazioni per le imprese italiane," Temi di discussione (Economic working papers) 428, Bank of Italy, Economic Research and International Relations Area.
    5. Corò Giancarlo & Grandinetti Roberto, 1999. "Strategie di delocalizzazione e processi evolutivi nei distretti industriali italiani," L'industria, Società editrice il Mulino, issue 4, pages 897-924.
    6. Roberta Rabellotti & Alessia Amighini, 2003. "The effect of globalisation on industrial districts in Italy: evidence from the footwear sector," ERSA conference papers ersa03p500, European Regional Science Association.
    7. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, January.
    8. Marco Bellandi, 2001. "Local development and embedded large firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 13(3), pages 189-210, July.
    9. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
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    Cited by:

    1. Alberto Majocchi & Andrea Zatti, 2008. "Land use, congestion and urban management," ISAE Working Papers 99, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    2. Centorrino M. & Ofria F. & Farinella D., 2010. "Convergence and divergence processes between the Mezzogiorno and the Centre- North ten years after the adoption of the EMU," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3, pages 453-486.

    More about this item


    Foreign market penetration; Industrial districts; Qualitative choice models;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities


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