Heterogeneity and distance. Some propositions on how differences across regions, firms and functions affect the role of distance in FDI location decisions

Davide Castellani, Giulio Giangaspero () and Antonello Zanfei
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Giulio Giangaspero: Department of Social Sciences and Economics - DiSS - Sapienza University of Rome - Italy

No 1308, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

Abstract: The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. And the need to consider distance as a multifaceted concept including both spatial and institutional features has also been increasingly acknowledged in the literature. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.

Keywords: FDIs; Multinationals; Distance; Heterogeneity. (search for similar items in EconPapers)
JEL-codes: F23 O33 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2013, Revised 2013
New Economics Papers: this item is included in nep-bec, nep-cse, nep-geo and nep-int
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Citations: View citations in EconPapers (1)

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http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_13_08.pdf First version, 2013 (application/pdf)

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