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FDI and Corporate Geography in the Home Country

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  • Rita Cappariello
  • Stefano Federico
  • Roberta Zizza

Abstract

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.

Suggested Citation

  • Rita Cappariello & Stefano Federico & Roberta Zizza, 2010. "FDI and Corporate Geography in the Home Country," FIW Working Paper series 051, FIW.
    • Handle: RePEc:wsr:wpaper:y:2010:i:051
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    References listed on IDEAS

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    1. Giorgio Barba Navaretti & Davide Castellani & Anne-Celia 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.
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    Cited by:

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    More about this item

    Keywords

    foreign direct investment; multi-plant firms; employment; Italy;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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