This article investigates the determinants of foreign direct investment (FDI)location across Italian provinces. Specifically it examines the relationship between industry- specific local industrial systems and the location of inward FDI. This extends previous analysis beyond the mere density of activity, to illustrate the importance of the specific nature of agglomerations in attracting inward investment. The article develops a model of FDI location choice using a unique FDI database stratified by industry and province. The results also suggest that the importance of agglomeration differs between industries, and offers some explanation for this.
|Number of pages||17|
|Journal||International Journal of the Economics of Business|
|Publication status||Published - Feb 2005|
Bibliographical noteThis is an Author's Accepted Manuscript of an article published in De Propris, L., Driffield, N., & Menghinello, S. (2005). Local industrial systems and the location of FDI in Italy. International journal of the economics of business, 12(1), 105-121. International Journal of the Economics of Business © 2005 International Journal of the Economics of Business, Taylor & Francis, available online at: http://www.tandfonline.com/10.1080/1357151042000323085
- local industrial systems
- knowledge sourcing
- count data econometrics