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Fear of Relocation? Assessing the Impact of Italy’s FDI on Local Employment

Author

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  • Stefano Federico
  • Gaetano Alfredo Minerva

    (SEMEQ Department - Faculty of Economics - University of Eastern Piedmont)

Abstract

Using data from U±cio Italiano dei Cambi and Istituto Nazionale di Statistica, we empirically assess the impact of Italy's outward foreign direct investment (FDI) on local employment growth between 1996 and 2001 for 12 manufacturing industries. We find that FDI towards advanced countries is associated with faster local employment growth, relatively to the national industry average. Local areas whose ¯rms invest more towards developing countries show instead an employment performance in line with the national industry average; only for two industries the relationship turns out to be negative.

Suggested Citation

  • Stefano Federico & Gaetano Alfredo Minerva, 2005. "Fear of Relocation? Assessing the Impact of Italy’s FDI on Local Employment," Working Papers 102, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
  • Handle: RePEc:upo:upopwp:102
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    References listed on IDEAS

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    Cited by:

    1. Giovanni Ferri & Giovanni Costa, 2007. "The determinants and employment effects of international outsourcing: the case of Italy," SERIES 0016, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Apr 2007.
    2. Nunnenkamp, Peter, 2006. "Relocation, offshoring and labour market repercussions: The case of the German automobile industry in Central Europe," Open Access Publications from Kiel Institute for the World Economy 3910, Kiel Institute for the World Economy (IfW Kiel).
    3. Maggi, Elena & Mariotti, Ilaria & Boscacci, Flavio, 2007. "The indirect effects of manufacturing internationalization on logistics - Evidence from the Italian districts," Economics & Statistics Discussion Papers esdp07031, University of Molise, Department of Economics.
    4. Davide Castellani & Ilaria Mariotti & Lucia Piscitello, 2006. "Outward investments and skill upgrading. Evidence from the Italian case," KITeS Working Papers 185, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2006.

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    More about this item

    Keywords

    Foreign direct investment; agglomeration; employment growth;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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