FDI and Corporate Geography in the Home Country
This paper contributes to the empirical literature on the home-country effects of FDI. Instead of comparing FDI firms to non-FDI firms, we look at what happens within multi-plant FDI firms and we compare headquarters to onheadquarter plants belonging to the same firm. Using survey data on Italian industrial firms, we find that in FDI firms non-headquarter plants show a significantly worse performance in terms of employment and investment than headquarter plants. This suggests that the home-country effects of FDI tend to be biased in favour of headquarters.
|Date of creation:||Jun 2010|
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- Barba Navaretti, Giorgio & Castellani, Davide & Disdier, Anne-Célia, 2006.
"How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy,"
CEPR Discussion Papers
5765, C.E.P.R. Discussion Papers.
- Giorgio Barba Navaretti & Davide Castellani & Anne-Célia Disdier, 2006. "How Does Investing in Cheap Labour Countries Affect Performance at Home? France and Italy," Development Working Papers 215, Centro Studi Luca d'Agliano, University of Milano.