IDEAS home Printed from https://ideas.repec.org/a/oup/cjrecs/v18y2025i1p167-192..html
   My bibliography  Save this article

Inward FDI and regional performance in Europe after the Great Recession

Author

Listed:
  • Riccardo Crescenzi
  • Roberto Ganau

Abstract

This paper looks at inward foreign direct investment (FDI) and regional labour productivity in the aftermath of the Great Recession, exploring two FDI-induced effects. The first effect is linked with a capacity of FDI per se to trigger short-term productivity gains in response to a global shock. The second effect is associated with the degree of industrial diversification of these investment flows. The results suggest that it is not the amount of foreign investment received per se that matters for productivity recovery but its composition. A low degree of FDI diversification helped regions to gain productivity after the shock. The effect is stronger in regions with an industrial profile concentrated in a limited number of sectors, particularly in services. FDI can support regional recovery, but in the short run, it does so by matching and reinforcing existing regional specialisation profiles and to the benefit of services-oriented regions.

Suggested Citation

  • Riccardo Crescenzi & Roberto Ganau, 2025. "Inward FDI and regional performance in Europe after the Great Recession," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 18(1), pages 167-192.
    • Handle: RePEc:oup:cjrecs:v:18:y:2025:i:1:p:167-192.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/cjres/rsae038
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:cjrecs:v:18:y:2025:i:1:p:167-192.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/cjres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.