Do Multinational Enterprises Affect Domestic Firms' Productivity?

Filippo Reganati () and Cesare Imbriani

STUDI ECONOMICI, 2002, vol. 2002/78, issue 78

Abstract: Do Multinational Enterprises Affect Domestic Firms? Productivity? (di Cesare Imbriani, Filippo Reganati) - ABSTRACT:This work examines the main theoretical and empirical interpretations of the effects of FDI on the productivity of local firms and, in particular, the way in which productivity spillovers are related to inter or intra regional differences. In studying the Italian manufacturing sector, using cross-sectional data, we found that the stronger presence of multinational enterprises increased the level of domestic productivity, but productivity spillovers were concentrated only in the north-western area of Italy. This indicates not only the existence of a geographic component in the spillovers from FDI but also the peculiarity of Italian manufacturing structure, where different models of production, such as the network enterprise model in the North-west, the industrial district model in the North-east and the backward model in the South, coexist.

Date: 2002
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