FDI and Corporate Geography in the Home Country
Rita Cappariello (),
Stefano Federico and
Roberta Zizza ()
No 51, FIW Working Paper series from FIW
This paper contributes to the empirical literature on the home-country effects of FDI. Instead of comparing FDI firms to non-FDI firms, we look at what happens within multi-plant FDI firms and we compare headquarters to onheadquarter plants belonging to the same firm. Using survey data on Italian industrial firms, we find that in FDI firms non-headquarter plants show a significantly worse performance in terms of employment and investment than headquarter plants. This suggests that the home-country effects of FDI tend to be biased in favour of headquarters.
Keywords: foreign direct investment; multi-plant firms; employment; Italy (search for similar items in EconPapers)
JEL-codes: F20 F23 R30 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2010:i:051
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