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Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions

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Listed:
  • Davide Castellani

    () (Department of Economics, Finance and Statistics, Università di Perugia)

  • Giulio Giangaspero

    () (Department of Social Sciences and Economics - DiSS - Sapienza University of Rome - Italy)

  • Antonello Zanfei

    () (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")

Abstract

The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. And the need to consider distance as a multifaceted concept including both spatial and institutional features has also been increasingly acknowledged in the literature. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.

Suggested Citation

  • Davide Castellani & Giulio Giangaspero & Antonello Zanfei, 2013. "Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions," Working Papers 1308, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2013.
  • Handle: RePEc:urb:wpaper:13_08
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    Keywords

    FDIs; Multinationals; Distance; Heterogeneity.;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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