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Outward FDI and local employment growth in Italy

Stefano Federico and Gaetano Alfredo Minerva ()

No 613, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Using several data sources, we assess the impact of Italy's outward foreign direct investment (FDI) on local employment growth between 1996 and 2001 for 12 manufacturing industries and 103 administrative provinces. Our main result is that, controlling for the local industrial structure and area fixed effects, FDI is associated with faster local employment growth, relatively to the national industry average. We also find that employment in small plants is not negatively influenced by higher levels of FDI. Our findings do not support therefore the idea that FDI is detrimental to local employment growth in the home country.

Keywords: Foreign direct investment; agglomeration; employment growth (search for similar items in EconPapers)
JEL-codes: C21 F21 F23 (search for similar items in EconPapers)
Date: 2007-02
New Economics Papers: this item is included in nep-eec and nep-geo
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Related works:
Journal Article: Outward FDI and Local Employment Growth in Italy (2008) Downloads
Working Paper: Outward FDI and Local Employment Growth in Italy (2006) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_613_07

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