Global Investments and Regional Development Trajectories: The Missing Links

46 Pages Posted: 29 Oct 2016

See all articles by Riccardo Crescenzi

Riccardo Crescenzi

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Simona Iammarino

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Date Written: October 28, 2016

Abstract

Regional economic development has been long conceptualised as a non-linear, interactive and socially embedded process: these features were traditionally regarded as spatially mediated and highly localised. However, unprecedentedly fast technological change coupled with the intensification of global economic integration processes has spurred the need to place regional development in a truly open and interdependent framework. Despite substantial progress made by the academic literature, rethinking regional development in this perspective still presents a number of challenges in terms of concepts, empirical evidence and policy approaches. Following an interdisciplinary assessment of how openness and connectivity – proxied by one particular of the many cross-border flows, i.e. global investments – interact with regional economic development trajectories, this paper presents a picture of the geography of foreign investments from and to the European regions and its change after the financial and economic crisis in 2008. This simple exercise allows us to shed some initial light on how the operationalisation of regional connectivity can improve our empirical understanding of the evolution of regional economies and the policy approach needed to support their reaction to change.

Keywords: FDI, regions, local-global connectivity, regional development, Europe

JEL Classification: F2, R11, R12, O19, O3, O52

Suggested Citation

Crescenzi, Riccardo and Iammarino, Simona, Global Investments and Regional Development Trajectories: The Missing Links (October 28, 2016). LEQS Paper No. 118, Available at SSRN: https://ssrn.com/abstract=2860554 or http://dx.doi.org/10.2139/ssrn.2860554

Riccardo Crescenzi (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Simona Iammarino

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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