Air Connectivity and Foreign Direct Investments The economic effects of the introduction of new routes

By integrating the theoretical perspective of international business, economic geography and transportation science, we develop a novel framework to investigate the relationship between the localization of foreign direct investments (FDI) and air connectivity. In particular the key research question for this study is whether and in which ways the spatial network structure offered by the global airline system contributes to the development of both outward and inward FDI. Due to the widespread diffusion of multinationals, air travel is often required as a mean to engage face-to-face contacts at various levels within the organization, by the board of directors, managers, entrepreneurs and staff. The introduction of a new route, by reducing transport costs, should increase the likelihood of FDI exchange between the regions newly connected. Several studies have already analyzed the linkage between air traffic and various urban or regional characteristics, among which its degree of internationalization, and have unanimously demonstrated that the geography of FDI is related to the desire of large multinational companies to easily access the main international airports. However, literature traditionally focused on larger multinational companies located in global cities. To the best of our knowledge, no study has yet considered the effect of air travel on FDI by SMEs in secondary regions. We aim to test whether the geography of FDI between Italy and Europe is related to the desire of overseas companies to directly access international airports. This paper employs an event study methodology to determine the impact of new routes on the generation of both inward and outward FDI considering both SMEs and large companies. In particular, we built an original database covering the period 1997-2010 where for each FDI between Italy and Europe we collected information about the locations of both the overseas company and the newly created subsidiaries at a municipality level. That enables us to estimate the impact of a new route to the FDI subsequently generated between the catchment areas of the connected airports. We account for the existence of a possible endogeneity bias by considering several control variables.

Productivity Spillovers from Foreign MNEs on Domestic Manufacturing Firms: Is Co-location Always a Plus?

The paper analyses productivity spillovers from foreign MNEs on domestic manufacturing firms. Using a database on foreign MNEs in Italy, our results reveal that local firms do benefit from the presence of foreign MNEs, and the effect is higher when local and foreign firms in manufacturing sectors are co-located. However, spillovers benefiting domestic firms are likely to be less influenced by co-location when foreign MNEs are in services sectors as the latter are different from manufacturing industries under a number of aspects that overcome the effect of distance. Indeed, in these sectors, proximity and interaction are often obtained through professional mobility and temporary inter-organizational routines.Multinational Firms, Co-Location, Proximity, Spillover Effects, Customer-Supplier Interaction, Vertical Linkages

Inward FDI in Italy and its policy context

The attractiveness of the Italian economy for inward foreign direct investment (IFDI) has been traditionally limited, despite the country's locational advantages such as a large domestic market and a skilled labor force. The recent global crisis worsened the country's IFDI position, with flows falling from US$40 billion in 2007 to US$ 11 billion in 2008 before recovering to US$20 billion in 2009 but down again to US$ 9 billion in 2010. Although the country's IFDI stock had grown since 2000 at a rate similar to that of the European Union as a whole, in 2010 IFDI stock contracted vis-à -vis 2009, reflecting how Italy, compared to other key European countries and to its own potential, continues to underperform. The main obstacles to exploiting the country's potential for IFDI lie both in the largely insufficient actions undertaken to attract and promote IFDI, and especially in the lack of coordination with other relevant policy measures (e.g. infrastructure development) within a broader framework aimed at regional and national development

Outward FDI from Italy and its policy context, 2012

Italy’s outward foreign direct investment (OFDI) performance is quite modest compared to that of other European Union (EU) countries, mainly due to structural characteristics like the low number of large firms, the specialization in “traditional” low- and medium-technology manufacturing industries and the almost negligible activity in advanced service industries. The global economic and financial crisis seriously affected the Italian economy and resulted in a decline in OFDI flows in 2009, owing to few large merger and acquisition (M&A) deals. However, due to the stagnation of the internal market, Italian firms continued to pursue growth opportunities abroad in 2010 and in 2011 through small-scale investments, in particular outside the EU

Outward FDI from Italy and its policy context

Italian companies started to invest abroad in the 1960s in search of new markets. However, Italy's outward foreign direct investment (OFDI) performance is quite modest compared with that of other European Union (EU) countries, mainly due to structural characteristics like the low number of large firms, the specialization in traditional low- and medium-technology manufacturing industries and the almost negligible activity in advanced services. The global economic and financial crisis seriously affected the Italian economy. However, the positive trend of Italian OFDI was not interrupted, and in 2009 OFDI flows remained stable compared to 2008. Habitually silent on this policy area in earlier decades, the Italian Government has recently shown a more favorable stance toward OFDI, introducing specific policy measures addressed to small and medium-sized enterprises, which have started to expand strongly abroad "“ these now constitute almost 90% of Italian multinational enterprises (MNEs)

Outward FDI from Italy and its policy context

Italian companies started to invest abroad in the 1960s in search of new markets. However, Italy’s outward foreign direct investment (OFDI) performance is quite modest compared with that of other European Union (EU) countries, mainly due to structural characteristics like the low number of large firms, the specialization in traditional low- and medium-technology manufacturing industries and the almost negligible activity in advanced services. The global economic and financial crisis seriously affected the Italian economy. However, the positive trend of Italian OFDI was not interrupted, and in 2009 OFDI flows remained stable compared to 2008. Habitually silent on this policy area in earlier decades, the Italian Government has recently shown a more favorable stance toward OFDI, introducing specific policy measures addressed to small and medium-sized enterprises, which have started to expand strongly abroad – these now constitute almost 90% of Italian multinational enterprises (MNEs)

Motivation and young people's career planning: A perspective from the reinforcement sensitivity theory of personality

We examined the associations between personality factors of the reinforcement sensitivity theory (RST) of personality and career planning predispositions in young people (university students and recent graduates), comprising Career Adaptability, Career Optimism, and Perceived Knowledge. As predicted, all three career dispositions were positively correlated with Behavioural Approach System (BAS) scores, principally Reward Interest and Goal-Drive Persistence; and all dispositions negatively correlated with Behavioural Inhibition System (BIS) scores – these significant associations survived hierarchical multiple regression with age and gender statistically controlled. These findings indicate that motivational factors of the kind measured by RST-related approach-avoidance factors are associated meaningfully with career planning predispositions. Although a novel finding, further work is needed to determine whether these relationships exist when actual career-related decisions and behaviours are examined

Fibrosarcoma with Typical Features of Postinjection Sarcoma at Site of Microchip Implant in a Dog: Histologic and Immunohistochemical Study

A 9-year-old, male French Bulldog was examined for a subcutaneous mass located at the site of a microchip implant. Cytologic examination of the mass was suggestive of a malignant mesenchymal neoplasm. Histologically, the mass was confirmed as a high-grade infiltrative fibrosarcoma, with multifocal necrosis and peripheral lymphoid aggregates. By immunohistochemistry, the sample was investigated for vimentin, smooth-muscle actin (SMA), CD3, CD79α, and CD18. All the neoplastic cells were positive for vimentin. Scattered cells at the periphery of the lesion were also positive for SMA, highlighting a myofibroblastic phenotype. The lymphoid cells were positive for CD18 and CD3. No aluminum deposits were detected by the aurintricarboxylic acid method. A diagnosis of fibrosarcoma morphologically similar to feline postinjection sarcomas was made. Fibrosarcomas at the site of injections have been reported in dogs and ferrets. Furthermore, neoplastic growth at the site of microchip implant in dog and laboratory rodents has been described

The Internationalization of Production by Italian Industrial Districts' Firms: Structural and Behavioural Determinants

The paper argues that structural and behavioural determinants combine to influence internationalisation of production through FDI by industrial districts' firms. As far as the former, leadership effects, represented by the presence of large firms within the district, and Porterian effects, denoted by the intensity of domestic rivalry, positively influence the likelihood that district firms will start internationalise through FDI. Moreover, spillovers induced by the presence of foreign-owned MNCs positively impact on the district's degree of internationalisation, provided it has already autonomously developed the ability to grow internationally. As far as behavioural features, previous export relationships increase the district firms' likelihood of undertaking FDI, while innovative capacity joins and strengthens internationalisation processes already started

Development of instrumented downhill bicycle components for field data collection

Abstract A downhill bicycle was equipped with strain gauge bridges at the most significant safety components, stroke sensors at the suspensions and accelerometers at the front axle. A set of 7 channels was applied on the frame, 4 channels were applied to the rear swing arm, 6 channels to the front fork, 2 channels to the front and rear brakes and a customized load cell was connected to the rear damper. Each channel was calibrated during static laboratory tests and the calibration constants or matrices were used to convert the measured signals into functional loads applied to the components. Tests were performed involving an expert downhill racer on a competition track. The peak values collected during the study would allow for the definition of static overload tests on the bicycle safety components; the time histories collected in the field will allow evaluating the field loads spectra to be used in the fatigue life prediction of the components and defining the standard fatigue tests to verify the minimum required fatigue strength of the most important components of such an extreme sport discipline