Local industrial systems and the location of FDI in Italy


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.

Publication DOI: https://doi.org/10.1080/1357151042000323085
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School > Aston India Foundation for Applied Research
Additional Information: This 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
Uncontrolled Keywords: local industrial systems,knowledge sourcing,agglomeration,count data econometrics
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Related URLs: http://www.tand ... 151042000323085 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2005-02
Authors: De Propris, Lisa
Driffield, Nigel (ORCID Profile 0000-0003-1056-3117)
Menghinello, Stefano



Version: Accepted Version

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