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

Foreign Direct Investment, Technology Diffusion, and Host Country Productivity Growth

The principal objective of this paper is to ascertain whether foreign direct investment (FDI) has statistically significant effects on host countries\u27 economic performance, such as total factor productivity. Such effects are often referred to as FDI externalities or spillover effects. This paper attempts to evaluate whether these spillover effects depend on the sending countries\u27 income levels. Our empirical analysis shows that FDI exerts positive impacts on less developed countries. Further, we determine that the impacts of FDI from developed countries are more prevalent. So-called North-South effects were confirmed; however, we do not detect South-South effects. We also investigated the other channel, imports, and demonstrate its significant impacts on total factor productivity. © 2011 by Asian Development Bank

Does foreign direct investment transfer technology across borders?

info:eu-repo/semantics/publishe