Top PDF Manufacturing location choice: empirical evidence from Italy

Manufacturing location choice: empirical evidence from Italy

Manufacturing location choice: empirical evidence from Italy

However, firms have recognized that locating the production abroad it is not always beneficial. This because globalization has caused a positive development in low-cost countries due to economy improvement and also the market and the infrastructure have developed (Rice & Stefanelli, 2014). For instance, many firms re-evaluated their production location decision and to build production activities close to their domestic R&D operation. This phenomenon is known as manufacturing reshoring and it consists on a decision of a company to bring the manufacturing activities back to its home country (Fratocchi et al., 2016; Fratocchi et al., 2015). There is also other motivation why firms decide to reshore. In particular for firms that operate in fashion industry the “Made-in effect” results to be one of the main motivations of reshoring in which the quality perceived is affected by the real production location in particular for high-end range of production (Ancarani et al., 2015; Fratocchi et al., 2013). Bulte and Moenaert, (1998) find that “physical distance is an important barrier to communication in R&D settings, and that co-location can overcome it” which is the theoretical basis of many studies in international business literature. Ketokivi and Ali-Yrkkö, (2009) consider knowledge intensity of activities such as product/process complexity and the industry rate of change as a need for co-location. Product complexity includes the characteristics of the specific product that is produced while production complexity refers to the characteristics of production process that manufactures the final products. The need for co-location may depend also from the high level of tacit process knowledge (Gray et al., 2015) and in particular from t he extent to which the product and process design may be coded (Pisano & Shih, 2012). Pisano, (2012) argues that in fashion industry the co-location is important in that there is a need to exchange information constantly between two units especially when firms have complex product, difficult to code and h igh level of product customization.
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The Long-run Money Demand Function: Empirical Evidence from Italy

The Long-run Money Demand Function: Empirical Evidence from Italy

The ERM was abandoned in 1992 due to unsustainable speculative attacks on the Italian Lira. Italy’s exit from the ERM required a change in monetary policy to avoid a spiral between exchange rate devaluation and inflation. In the same year, another step was taken towards the independence of the Central Bank, as the treasury was no longer allowed to borrow from the Bank of Italy. In addition, the power to amend the discount rate, which was previously formally held by the Ministry of Finance in 1992, was officially entrusted to the Italian bank by imposing sanctions to allow for legal independence. Overall, the 1980s and 1990s marked a change in the monetary regime. Not only did the correlation between public deficits and money generation disappear, but the regulatory framework also underwent significant changes (2012). In November 1996, the Italian currency re-entered the ERM
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Innovation and productivity in SMEs. Empirical evidence for Italy

Innovation and productivity in SMEs. Empirical evidence for Italy

Measuring the effects of innovative activities on firms’ productivity has been an active area for research for several decades both as a policy concern and as a challenge for econometric applications. Notwithstanding a large number of empirical studies available, measuring the effect of innovation (product and process) on productivity at the firm level (see Griliches, 1995), the literature still does not provide a unique answer in terms of the magnitude of this impact. Because of the variability and uncertainty that is inherent in innovation, this fact is not unexpected: at best, economic research should give us a distribution of innovation outcomes and tell us how they have changed over time. Recent firm level studies, Lichtenberg and Siegel (1991) on the U.S., Hall and Mairesse (1995) and Mairesse and Mohnen (2005) on France, Harhoff (1998) and Bönte (2003) on Germany, Klette and Johansen (1996) on Norway, Van Leeuwen and Klomp (2006) on the Netherlands, Janz et al (2004) on Germany and Sweden, Lööf and Heshmati (2002) on Sweden, Lotti and Santarelli (2001) and Parisi et al (2006) on Italy, find that the effect of R&D on productivity is positive, 1 although some have suggested that the returns to R&D have declined over time (Klette and Kortum, 2004). The majority of the empirical analyses rely on an extended production-function approach, which includes R&D (or alternative measures of innovation effort) as another input to production.
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Credit rationing and credit view: empirical evidence from an ethical bank in Italy

Credit rationing and credit view: empirical evidence from an ethical bank in Italy

Attempts have been made in the empirical literature to identify credit ra- tioning and its determinants using balance sheet data or evidence from corporate surveys. However, observational equivalence, identification prob- lems, and interview biases are serious problems in these studies. We analyze directly the determinants of credit rationing in credit files by examining the difference between the amounts demanded by and supplied to each borrower, as shown by official bank records. Our findings provide microeconomic evi- dence that supports the credit view hypothesis by showing that the European Central Bank refinancing rate is significantly and positively related to partial (but not total) credit rationing. This finding is consistent with the hypothesis that this variable affects the total volume of bank loans.
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Wagner's law in Italy: empirical evidence from 1960 to 2008

Wagner's law in Italy: empirical evidence from 1960 to 2008

Furthermore, it is also necessary to dwell on many asymmetries concerning public spending that hurt private citizens, pointed out by the “Public Choice School” and by the “Scuola Italiana di Scienza delle Finanze”: the opposition between concentrated benefits and costs which are instead spread; between visible advantages and invisible costs (made so by mechanisms of “fiscal illusion” – that hides the cost of deficit financing through the issue of bonds of public debt – and that of the “financial illusion” – that hides the inflationary cost (via seignorage, and therefore with creation of monetary means) of the financing of the public deficit 54 .
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Innovation and Productivity in SMEs: Empirical Evidence for Italy

Innovation and Productivity in SMEs: Empirical Evidence for Italy

The data we use come from the 7 th , 8 th and 9 th waves of the “Survey on Manufacturing Firms” conducted by Mediocredito-Capitalia (an Italian commercial bank). These three surveys were carried out in 1998, 2001, and 2004 respectively, using questionnaires administered to a representative sample of Italian manufacturing firms. Each survey covered the three years immediately prior (1995-1997, 1998-2000, 2001-2003) and although the survey questionnaires were not identical in all three of the surveys, they were very similar in the sections used in this work. All firms with more than 500 employees were included, whereas smaller firms were selected using a sampling design stratified by geographical area, industry, and firm size. We merged the data from these three surveys, excluding firms with incomplete information or with extreme observations for the variables of interest. 4 We focus on SMEs, which represent nearly 90 per cent of the whole sample, imposing a threshold of 250 employees, in line with the definition of the European Commission; we end up with an unbalanced panel of 9,674 observations on 7,375 firms, of which only 361 are present in all three waves. Table 1 contains some descriptive statistics, for both the unbalanced and the balanced panel. Not surprisingly, in both cases, the firm size distribution is skewed to the right for both groups of firms, with an average of around 50 and 53 employees respectively. Firms in the low-tech sector tend to be slightly smaller, with average employment of 47 and median employment of 30 (Table 2). 5 In the unbalanced sample, 62% of the firms
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Differentiation strategies for the wine and nursery sector: empirical evidence from an Italy region

Differentiation strategies for the wine and nursery sector: empirical evidence from an Italy region

The enhancement of grape ’ s biodiversity, interpreted according to the relational perspective, can be realized in the last phase of value creation process, by selling a cer- tified high-quality wine: the grape’s biodiversity gives added value to the consumer in sensorial and hedonistic terms, thus generating competitive advantage for the wineries of a specific area (Pinder 2011). The creating value based on biodiversity is a phased process in which knowledge circulates and is filtered and transferred by different actors of the network (winery, grape grower, research laboratories, etc.) through the exchange of resources and competencies. The starting point of this process lies in the relation- ship management between the upstream supply chain firms (wineries, grape growers, research institutes, other suppliers). The wineries ’ marketing strategy chances to achieve the consumer trust are enclosed in the ability of developing relationships in order to create the conditions to access to intangible resources of the other players in the network, to combine them harmoniously with their own, to occupy the most convenient location within the network, then to acquire a competitive advantage, which is defensible in the new economic environments due to globalization of markets (Contò et al. 2015; Stoddard and Clopton 2015; Tudisca et al. 2013).
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The determinants of CO2 emissions: empirical evidence from Italy

The determinants of CO2 emissions: empirical evidence from Italy

causality   in   the   relationship   between   the   two   variables.   Overall,   the   specifications   of   econometric   models   have   suffered   from   omitted   variable   bias   yielding   mixed   results   (Ozturk,  2010;  Payne,  2010a,  b).  A  third  stream  of  research  has  emerged  which  combines   the  previous  two  strands  by  examining  dynamic  relationships  between  economic  growth,   energy  consumption  and  pollution  emissions  (Apergis  and  Payne,  2009a,  2010;  Martínez-­‐ Zarzoso  and  Maruotti,  2011;  Omri,  2013;  Poumanyvong  and  Kaneko,  2010;  Saboori  et  al.,   2012;   Sari   and   Soytas,   2007;   Shahbaz   et   al.,   2013;   Wang   et   al.,   2011).   Growing   concern   over   climate   change   has   given   rise   to   a   new   literature,   mainly   panel-­‐based   research,   devoted   to   investigate   linkages   between   economic   growth,   energy   consumption   and   pollutant   emissions.   Many   empirical   studies   posit   a   nonlinear   quadratic   relationship   according   to   the   environmental   Kuznets   hypothesis   (Ang,   2007;   Halicioglu,   2009;   Ozturk   and   Acaravci,   2013).   The   empirical   studies   typically   determine   Granger   causality   in   the   short-­‐run  and  long-­‐run  sense  and  somehow  do  not  pay  attention  to  the  measurement  of   the   size   and   direction   of   short-­‐term   and   long-­‐term   parameters   among   the   variables   of   interest.  As  the  literature  stands,  the  research  provides  significant  evidence  on  the  drivers   of   CO2   emissions   for   a   larger   set   of   countries   such   as   industrialized   and   newly   industrialized   countries,   emerging   economies   and   less   regarding   small   open   economies   within  a  single-­‐country  setting    (Ang,  2008;  Apergis  and  Payne,  2009a;  Chandran  and  Tang,   2013;  Ozturk  and  Acaravci,  2010;  Shahbaz  et  al.,  2011;  Sharma,  2011;  Soytas  et  al.,  2007;   Zhang  and  Cheng,  2009).    
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The determinants of CO2 emissions: empirical evidence from Italy

The determinants of CO2 emissions: empirical evidence from Italy

leads   to   an   increase   in   0.776   percent   in   CO2   emissions   in   the   long-­‐run.   This   result   is   statistically  significant  at  the  10  percent  level  of  significance  whereas  the  parameters  of   the  remaining  variables  are  not.  The  short-­‐run  results  indicate  that  energy  consumption  is   statistically  significant  at  the  10  percent  level,  but  the  size  and  magnitude  of  its  effect  is   small.   A   1   percent   increase   in   energy   consumption   will   only   to   an   increase   in   0.088   percent   in   emissions.   The   long-­‐run   elasticity   of   CO2   emissions   with   respect   to   energy   consumption   is   greater   than   in   the   short-­‐run.   The   strong   correlation   between   energy   consumption  and  emissions  is  not  surprising.   Trade  openness  is  likely  to  have  a  negative  effect   on  CO2  emissions  in  both  short-­‐term  and  long-­‐term,  but  it  is  not  statistically  significant.   Interestingly,   economic   growth   is   a   positive   and   statistically   significant   driver   of   CO2   emissions   in   the   short-­‐run   model.   This   finding   is   obtained   at   the   1   percent   level   of   significance.  The  elasticity  of  emissions  with  respect  to  GDP  is  higher  than  unity  meaning   that  a  1  percent  increase  in  economic  growth  will  lead  to  an  increase  in  1.123  percent  in   energy  consumption.    This  means  that  over  time  higher  energy  consumption  in  Italy  gives   rise  to  more  CO2  emissions
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The Choice of Search Methods: Some Empirical Evidence from Italy

The Choice of Search Methods: Some Empirical Evidence from Italy

6. Conclusions From the results discussed above, it is possible to stress that resorting to family and friend networks is more widespread in small municipalities in the South where it can be considered as the out- come of individual reaction to the greater uncertainty of the eco- nomic environment in comparison to the North-Centre. In addition, unemployed are more likely to use the formal channel similarly to the individual behaviour in small municipalities in the North. The choice of the formal channel alone may be attributed to the fact that local state job agencies are more effective especially in the small municipalities as to the offer of unstable jobs. This seems to be confirmed by the higher percentage of individuals searching on the job in order to find a better or more stable work in these areas. The use of this SM, including mainly registering in the queue at the state job agency, also concerns southern women and, particularly, the married ones. As the benefits from being registered in the queue at the state job agencies are nearly the same all over Italy, this leads to believe that the persisting weak labour condition of women along with a greater uncertainty of the environment in the South brings about a searching behaviour affected by discour- agement and aimed at achieving a minimum of security, guaran- teed by the benefits of the formal channel.
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Sector Wise Exploratory Analysis of Household Residential Location Choice in the African Context: Empirical Evidence from Benin City, Nigeria

Sector Wise Exploratory Analysis of Household Residential Location Choice in the African Context: Empirical Evidence from Benin City, Nigeria

As expected, it was found that indigenes are more concentrated within the core region than anywhere else in the metropolis, while Ekenhuan-Airport road residential sector possess the highest concentration of migrants. In addition, the analysis revealed that most migrants prefer to live in the outer-most part of the metropolis especially the direction leading to their hometown or village of origin so as to be nearer or have easy access to their hometown. This character is pecu- liar to the Aduwawa-Oregbeni residential sector. This pattern corroborates the findings of Ozo (1986). It therefore confirms that this sociocultural sorting pat- tern still strongly exist in the metropolis till date. This finding confirms and re- flects the uniqueness of African cultural ties. This can be deduced on the one hand, from the character of the indigenes (Bini) of the region who are not will- ing to give up their family land (residence) or reside farther away from their natural source. On the other hand, the migrants who had to detach from their initial cultural ties and origin seek out new location in the city based upon the ease of accessibility to their hometown.
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Agglomeration economies and the location of foreign direct investment: empirical evidence from Romania

Agglomeration economies and the location of foreign direct investment: empirical evidence from Romania

endowment-rich location diminish with the number of firms; as firms congregate, the location becomes less appealing since competition for a scarce input among users bids up the price of the input. Finally, HEAD et al. (1995) include choice-specific fixed effects in the empirical setup, thereby controlling for unobservable location characteristics which may cause omitted variable bias. Using a conditional logit setup, the main finding of HEAD et al. (1995) is that industry-level agglomeration benefits play an important role in location decisions, even when controlling for endowment and choice specific effects. A 10 percent increase in the number of Japanese plants in a particular industry and region implies a roughly 6 percent increase in the likelihood that a Japanese firm in that industry chooses the region. This effect is roughly 4 times larger than our estimates of foreign industry-specific agglomeration effects. This discrepancy is consistent with findings in other studies, discussed below, which suggest that industry-specific agglomeration economies are comparably less important in transition 3
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Factors influencing location choice and cluster pattern of manufacturing small and medium enterprises in cities: evidence from Khulna City of Bangladesh

Factors influencing location choice and cluster pattern of manufacturing small and medium enterprises in cities: evidence from Khulna City of Bangladesh

phase, reason behind such pattern was explored. In the first phase, the study adopted the definition of Bangladesh Bank (2015) (see Appendix, Table 2) and the SME typ- ology developed by SME Foundation (SMEF, 2013) in designing a tally sheet to identify the major manufacturing SMEs and their locations. Seven categories of manufacturing SMEs were included in the tally sheet and manufacturing SMEs beyond these categor- ies were included as separate category ‘Others’. A city-wide walking survey was con- ducted on the major roads of the city to locate the manufacturing SMEs, put tally marks, and note location description (e.g. holding number or identifiable landmarks) on separate tally sheet assigned for each road or location. In addition to this, snowbal- ling technique was applied whereby the entrepreneurs of manufacturing units were asked to identify locations of other similar firms. This approach was felt logical since there was no reliable data from any registering authority or industry associations on the numbers and location of manufacturing SMEs in the city area and the conventional wisdom suggests that entrepreneurs usually have information about their competitors and their locations. Then the data were plotted on map of Khulna City Corporation applying GIS mapping tools to indicate location or cluster formation pattern. Five categories of manufacturing SMEs were identified in Khulna City as the major sectors in terms of number of firms. This survey was conducted between February, 2018 and June, 2018. The optimised hot spot analysis tool was applied to locate the potential cluster regions for manufacturing SMEs across 31 wards (smallest administrative unit) of the city. This tool is used to locate statistically significant hot spots (spatially clus- tered high values) and cold spots (clustering of low values) of incident data (points representing manufacturing SMEs). It generated maps of statistically significant hot spots for different categories of SMEs using Getis-Ord Gi* Statistic based on the given incident data and polygon features (ward boundaries) applying Fishnet aggregation method (ESRI, 2018). These spatial analyses were performed using ArcGIS 10.5.
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Strategy, advanced manufacturing technology and performance: empirical evidence from U.S. manufacturing firms

Strategy, advanced manufacturing technology and performance: empirical evidence from U.S. manufacturing firms

is so appealing at face value that a strong theoretical rationale to explain this idea has been slow in com- ing in the literature. Consequently, the existing AMT classifications need to be reassessed so that strategy orientations and AMT choice at the business unit level can be directly investigated. Second, in recent years, there has been an emphasis on the ‘‘flexible’’ nature of AMT. It is common to classify AMT as either fixed or flexible while other attributes of AMT such as its information processing capabilities are

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Collaboration objectives and the location of the university partner: evidence from the Piedmont region in Italy

Collaboration objectives and the location of the university partner: evidence from the Piedmont region in Italy

At the same time, while location in the same region is an important facilitator of collaboration, there may be several reasons why firms want to collaborate with more distant universities. The importance of geographic proximity must be balanced in with other types of proximity such as industrial (D’Este et al, 2012), technological (Maggioni et al., 2007; Hoekman et al., 2010), social, organizational, and institutional proximity (Autant-Bernard et al., 2007). Firms will use non-regional universities if the knowledge and skills required are not available within the region (Asheim and Coenen, 2006; Fritsch and Schwirten, 1999). Hence, we would expect firms to be more likely to collaborate with distant universities if their knowledge needs are in areas not addressed by the regional universities. Additionally, since R&D activities involve more abstract knowledge, we expect co-localization allowing frequent personal interaction to be less important in the choice of university partners, while the access to specific knowledge, even at a distance, may be more important. Laursen, Reichstein and Salter (2011) find that especially firms with high absorptive capacity prefer collaboration with a more distant but higher-quality university than with a lower ranked local university: thus, distance is not a strong barrier to collaboration, rather it is the quality of the university partner that matters and particularly for R&D collaborations. D’Este and Iammarino (2010) find a positive (but curvilinear) relationship between distance and the research quality of the partner university.
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Tax Policy, Risk and Entrepreneurial Choice Empirical Evidence from Germany

Tax Policy, Risk and Entrepreneurial Choice Empirical Evidence from Germany

Consequently, the main intention of the federal government’s recent bus iness tax reform, which came into effect on January 1 st , 2008, was to reduce the overall statutory tax rate on corporate profits to below 30 % and broaden the tax base. Besides the reduction of the corporation income tax from 25 % to 15 %, the reform also included some changes to the local business tax. The basic federal tax rate of the local business tax was lowered from 5 % to 3.5 % and the reduced basic tax rates for enterprises with low profits were abolished. At the same time, the deduction of the local business tax from its own tax base as well as from the corporate and personal income taxes was eliminated. 4 Moreover, the reform repealed the declining-balance method of depreciation and provide d tighter regulations against tax planning schemes, e.g. a new earnings-stripping procedure against excessive external debt financing or impediments to the relocation of high profit functions to abroad. 5 The tax base of the local business tax was further affected by a modified addition of interest expenses: The addition of half the interest expenses on long-term debt was replaced by the addition of 25 % of all interest expenses including a lump sum interest portion of rents, leasing rates and royalties in as much as they exceed an allowance of €100,000. By lowering the tax rate and broadening the tax base, the reform aimed at improving the position of the German business location in international tax competition and reducing incentives for tax avoidance (Bach, Buslei, and Dwenger 2007). A fundamental reform of local business taxation and of local public finance institutions was not attempted and remains a key topic among many economists and policy makers.
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The Entrepreneur's Choice of Location: Evidence from the Life Sciences

The Entrepreneur's Choice of Location: Evidence from the Life Sciences

Feldman mentions that the literature has formed a conventional wisdom on the connection between entrepreneurship and clusters while Cortright’s brief literature review concludes that the studies analyzing the issue have a consensus on the positive relationship. Additionally, Rocha’s more comprehensive literature review presented the evolution of studies in cluster economics, the different schools of thought, the different definitions of cluster and entrepreneur and finally the theoretical and empirical approaches on the role of clusters on entrepreneurship. On the lat- ter, the author concluded that in general the literature has argued in favor of the relationship be- tween clusters and entrepreneurship. He noted several factors fostering entrepreneurship within clusters: more available information about opportunities; lowering of entry and exit barriers; low degree of vertical integration leading to more niches of specialization; competition forces; pro- viding role models of successful firms; knowledge spillovers; providing access to physical, fi- nancial and commercial infrastructure and finally providing a culture where new business forma- tion is natural and failure does nor constitute a social stigma.
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Knowledge, Location, and Internationalization: Empirical Evidence for Manufacturing SMEs

Knowledge, Location, and Internationalization: Empirical Evidence for Manufacturing SMEs

competitive advantages. Main characteristics of ID regions are the existence of strong networks, collaboration promoting faster dissemination of new ideas, experiences and know- how due to geographical proximity, homogenous communities and institutions, common manufacturing traditions, and easier access to complementary services or capabilities, to name a few (Becattini 1990; Cooke 2002; Cooke and Morgan 1998; Gordon and McCann 2000; Marshall 1920; Porter 1990, Ramírez-Pasillas 2010; Staber 2009; Storper 1995a). The localization benefits of this kind appear to be of special significance for SMEs’ national and international competitiveness. This is because SMEs have less resource capacity in terms of financing, staffing and knowledge when compared to large MNEs. In addition, SMEs are less able to profit from the inter-regional or international division of labour. Thus, SME activity may depend heavily on quality of its local environment (e.g., Acs et al. 1997; Brunninge et al. 2007; Hollenstein 2005; Keeble et al. 1998; Kuo and Li 2003).
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Economic integration and location of manufacturing activities: Evidence from MERCOSUR

Economic integration and location of manufacturing activities: Evidence from MERCOSUR

2 Theoretical Framework The starting point for understanding location of economic activity in the context of increased economic integration is the International Trade Theory. Depending on the underlying factors explaining the spatial patterns of economic activity and their change as trade liberalization proceeds, three strands of theoretical literature can be distinguished. First, the Neoclassical Trade Theory focuses on the role of factor endowments and factor intensities in explaining specialization and location patterns. Second, the New Trade Theory points to the advantage of large markets in attracting economic activities with increasing returns to scale. Third, the more recent New Economic Geography underscores that the advantage of large markets is endogenous and explains location of economic activity through agglomeration patterns fostered by labour mobility and input-output linkages between firms. In this section we review these theoretical approaches, and highlight their assumptions and main results. The objective is to provide a theoretical basis for the empirical analysis that we carry out in the following sections. In particular, this theoretical framework serves us to derive the hypotheses that we test afterwards.
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Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania

Agglomeration Economies and the Location of Foreign Direct Investment: Empirical Evidence from Romania

The main findings of our study are fourfold. Firstly, service agglomeration economies and – to a lesser extent – industry-specific foreign and domestic agglomeration economies play an important role for the location of foreign manufacturing plants in Romania. Secondly, the impact of within-country differences in labor market conditions is less important than might be expected 8 , perhaps because labor market conditions vary more noticeably across rather than within countries. While we do find a statistically significant negative effect of labor conflicts, the effect is not very important economically. Other local labor market conditions have no statistically significant effects. Thirdly, our findings imply that results are sensitive to the inclusion of locational fixed effects. Finally, a comparison of our findings with those of other recent studies tentatively suggests that our qualitative results of the effects of service and industry-specific agglomeration are representative of other transition
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