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Fear of Relocation? Assessing the Impact of Italy’s FDI on Local Employment

Stefano Federico and Gaetano Alfredo Minerva ()

No 102, Working Papers from SEMEQ Department - Faculty of Economics - University of Eastern Piedmont

Abstract: Using data from U±cio Italiano dei Cambi and Istituto Nazionale di Statistica, we empirically assess the impact of Italy's outward foreign direct investment (FDI) on local employment growth between 1996 and 2001 for 12 manufacturing industries. We find that FDI towards advanced countries is associated with faster local employment growth, relatively to the national industry average. Local areas whose ¯rms invest more towards developing countries show instead an employment performance in line with the national industry average; only for two industries the relationship turns out to be negative.

Keywords: Foreign direct investment; agglomeration; employment growth (search for similar items in EconPapers)
JEL-codes: C21 F21 F23 (search for similar items in EconPapers)
Pages: 32
Date: 2005-06
New Economics Papers: this item is included in nep-eec, nep-geo and nep-int
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