The Internationalization of Italian Production and Industrial Districts: An Analysis of Investment

53 Pages Posted: 14 Jul 2006

Date Written: May 2006

Abstract

Using data from Ufficio italiano dei cambi for the period 1997-2001, the study analyses the distribution of foreign direct investment (FDI) outflows by sector and local area of origin. It tries to identify which local industrial structures determine a larger propensity to invest abroad, focusing especially on the role of "industrial districts." Controlling for a set of variables, we do not find any evidence that the presence of districts has a positive impact on FDI, contrary to what happens for exports. FDI outflows are mainly generated from large firms in capital-intensive industries. Beyond contributing to the literature on industrial districts, the results help understanding why Italy's FDI on GDP ratio is lower than in other advanced economies.

Note: Downloadable document is in Italian.

Keywords: Foreign direct investment, industrial clusters

JEL Classification: F21, L60, R11

Suggested Citation

Federico, Stefano, The Internationalization of Italian Production and Industrial Districts: An Analysis of Investment (May 2006). Bank of Italy Temi di Discussione (Working Paper) No. 592, Available at SSRN: https://ssrn.com/abstract=915346 or http://dx.doi.org/10.2139/ssrn.915346

Stefano Federico (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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