Using data from Ufficio italiano dei cambi for the period 1997-2001, the study analyses the distribution of foreign direct investment (FDI) outflows by sector and local area of origin. It tries to identify which local industrial structures determine a larger propensity to invest abroad, focusing especially on the role of “industrial districts”. Controlling for a set of variables, we do not find any evidence that the presence of districts has a positive impact on FDI, contrary to what happens for exports. FDI outflows are mainly generated from large firms in capital-intensive industries. Beyond contributing to the literature on industrial districts, the results help understanding why Italy’s FDI on GDP ratio is lower than in other advanced economies.
Published in 2005 in: L. F. Signorini, M. Omiccioli (a cura di), Economie locali e competizione globale: il localismo industriale italiano di fronte a nuove sfide, Bologna, il Mulino
