Attracting Foreign Direct Investments in Europe: Are Italian Regions Doomed?

Roberto Basile (), Luigi Benfratello and Davide Castellani

Rivista di Politica Economica, 2005, vol. 95, issue 1, 319-

Abstract: During the nineties, Europe became a major recipient of FDIs but Italian regions have been largely excluded from this process. Was it due to their characteristics, or were Italian regions “doomed” by a negative country effect? In this paper we address this issue by estimating the determinants of multinational firms’ location choices in 52 EU regions. We find that Italian regions indeed attracted significantly less than their observable potential, and that this could be explained by the inefficiency of the bureaucratic apparatus and of the legal system. The effect of taxes is instead strongly sensitive to the inclusion of agglomeration variables and is asymmetric across regions.

JEL-codes: C35 F23 O52 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (23)

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Working Paper: Attracting Foreign Direct Investments in Europe: are Italian Regions Doomed? (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:v:95:y:2005:i:1:p:319-

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