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FDI and Corporate Geography in the Home Country

Rita Cappariello (), Stefano Federico and Roberta Zizza ()

No 51, FIW Working Paper series from FIW

Abstract: 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)
Pages: 26
Date: 2010-06
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