Inward FDI and Skilled Labour Force in Veneto Industrial Districts

Mariachiara Barzotto () and Ilaria Mariotti
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Mariachiara Barzotto: University of Essex

A chapter in Agglomeration and Firm Performance, 2018, pp 63-79 from Springer

Abstract: Abstract Technological changes, globalisation and the increasing heterogeneity of firms populating Italian industrial districts (IDs) have deeply affected the fabric of these IDs. This chapter sheds light on the contribution of inward foreign direct investments (FDIs) to the host country’s skilled workforce, which is one of the most critical factors in IDs’ socio-economic resources. The chapter investigates whether, within the IDs, the labour workforce skills composition of affiliates of foreign multinational enterprises (MNEs) differs from that of uni-national firms. The analysis uses microdata from the Veneto NUTS-II region (Northeast Italy), as this is an economic area world-renowned for its manufacturing production and has historically been considered as a referential context for the Italian ID model. The results show that foreign affiliates of MNEs located in the Veneto IDs hire more skilled workers and more experienced workers (above 30 years old), as well as fewer foreign workers. This provides evidence of a positive impact of the presence of foreign affiliates of MNEs on the sustainability of IDs’ socio-economic fabric.

Keywords: Industrial district; Skills composition; Propensity score matching; Industrial commons; Inward FDIs (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/978-3-319-90575-4_5

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