IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The impact of FDI on firm survival in Italy

Listed author(s):
  • Anna Ferragina
  • Rosanna Pittiglio
  • Filippo Reganati

The aim of the analysis is to investigate the impact of inward FDI on Italian manufacturing and services firm survival. The paper is organized in two steps. First, we carry out theoretically and empirically the analysis of firm survival distinguishing between foreign multinationals, domestic multinationals and domestic non multinational firms. The empirical analysis is based on survival functions as well as a Cox proportional hazard model, controlling for firm and industry specific covariates. Second, we examine the effect of foreign presence on the survival of host country firms distinguishing between the impact on Italian-owned (indigenous) multinational and non multinational firms and on other foreign-owned firms (i.e., other MNEs) located in the host country. The finding reveals that during the period 2005-2007 while manufacturing and service firms owned by foreign MNEs are more likely to exit the market than national firms, on the other hand domestic MNEs have a higher chance of survival. These results stand even when other firm and industry specific variables are controlled for. This result support the idea that foreign MNEs are inherently footloose while Italian MNEs are more firmly rooted in the local economy. The estimates also indicate that older, larger and more productive firms have higher survival rates. Finally, firm survival of foreign MNEs and domestic MNEs is unaffected by the increased presence of foreign MNEs. On the other hand, the increased foreign presence has a positive impact on Italian non-MNEs’ survival only in the service sector.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: full text
Download Restriction: none

Paper provided by FIW in its series FIW Working Paper series with number 035.

in new window

Length: 21
Date of creation: Nov 2009
Handle: RePEc:wsr:wpaper:y:2009:i:035
Contact details of provider:

Order Information: Postal: FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wsr:wpaper:y:2009:i:035. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.