The literature on foreign direct investments (FDIs) has mainly analysed the location strategies of MNEs across national borders, but there have been few studies of location decisions by foreign investors within the borders of a single country. The literature on the location determinants of inward FDI within Italy is scant. The existing studies have focused on the head offices’ location, mainly because of data availability (Mariotti, Mutinelli, 2016). Nevertheless, the geography of FDI location is better explained by the location of the FDIs’ establishments especially when the industry of investigation is manufacturing. Indeed, while head offices may privilege urban areas, and largest cities, FDIs establishments may follow different location patterns (i.e. land availability, localization economies, financial incentives, etc.), settling down in peripheral areas. The present paper enriches the debate on the attractiveness of Italy towards manufacturing FDIs by concentrating on the location of the establishments of manufacturing foreign affiliates in the 110 NUTS3 provinces at the year 2012. Data on inward FDIs, and their establishment location, are provided by the Reprint database.
The geography of foreign affiliates establishments location
Ilaria Mariotti;Marco Alberto Mutinelli
2017-01-01
Abstract
The literature on foreign direct investments (FDIs) has mainly analysed the location strategies of MNEs across national borders, but there have been few studies of location decisions by foreign investors within the borders of a single country. The literature on the location determinants of inward FDI within Italy is scant. The existing studies have focused on the head offices’ location, mainly because of data availability (Mariotti, Mutinelli, 2016). Nevertheless, the geography of FDI location is better explained by the location of the FDIs’ establishments especially when the industry of investigation is manufacturing. Indeed, while head offices may privilege urban areas, and largest cities, FDIs establishments may follow different location patterns (i.e. land availability, localization economies, financial incentives, etc.), settling down in peripheral areas. The present paper enriches the debate on the attractiveness of Italy towards manufacturing FDIs by concentrating on the location of the establishments of manufacturing foreign affiliates in the 110 NUTS3 provinces at the year 2012. Data on inward FDIs, and their establishment location, are provided by the Reprint database.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
