From local to global, and return: geographical Indications and FDI in Europe

Riccardo Crescenzi, Fabrizio De Filippis (), Mara Giua, Luca Salvatici () and Cristina Vaquero Pineiro

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The geographical indication (GI) scheme of the European Union guarantees visibility and protection to high-quality agri-food products associated with a demarcated region of origin. This paper estimates the impact of the scheme in attracting agri-food foreign direct investment (FDI) in European NUTS3 regions, using a novel dataset and a generalized propensity score matching approach. Areas endorsed with GIs attract more FDI in agri-food-related activities than their non-GI counterparts. Positive effects, estimated for FDI inflows, related job creation and inter-sectoral spillovers on local employment, involves territories with lower institutional quality.

Keywords: foreign direct investment; geographical indications; regional development; territorial policy; European Union; European Union’s Horizon 2020 Research and Innovation Programme H2020 project BATModel [grant agreement number 861932] and the PON “Ricerca e Innovazione 2014–2020—Azione IV.6. Contratti di ricerca su tematiche Green”; D.M. 1062/2021; Ministero dell’Università e della Ricerca. This research was also funded by UK Research and Innovation (UKRI) under the UK government’s Horizon Europe funding guarantee [grant number 10041284]. This work is also part of a project that has received funding from the European Union’s Horizon Europe Programme [Grant agreement No. 101061104- ESSPIN-HORIZON-CL2-2021-TRANSFORMATIONS-01] (search for similar items in EconPapers)
JEL-codes: C31 O24 Q18 R11 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2023-10-12
New Economics Papers: this item is included in nep-agr, nep-geo, nep-int, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Papers in Regional Science, 12, October, 2023, 102(5), pp. 985 - 1006. ISSN: 1056-8190

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