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What drives European multinationals to the European Union neighbouring countries? A mixed-methods analysis of Italian investment strategies

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  • Andrea Ascani
  • Riccardo Crescenzi
  • Simona Iammarino

Abstract

This article aims to investigate the economic integration between the European Union and its neighbouring countries by exploring the location drivers of Italian Multinational Enterprises in 33 destination countries including the New Member States of the European Union and the European Neighbouring Countries. The article compares market- and efficiency-seeking motivations with asset-seeking strategies. The analysis is based on a mixed-methods approach. The quantitative analysis assesses the location determinants of 518 Italian Multinational Enterprises that invested in the area in the years 2003–2008, whereas qualitative information on strategic location decisions is collected by means of in-depth interviews with executives in two of the largest Italian Multinational Enterprises active in the region. Market-seeking considerations are still predominant drivers of location decisions in European Union Neighbouring Countries together with resource-seeking motivations. However, different Multinational Enterprises develop diversified strategies to increase their access to these areas, which are of increasing interest for global investors.

Suggested Citation

  • Andrea Ascani & Riccardo Crescenzi & Simona Iammarino, 2016. "What drives European multinationals to the European Union neighbouring countries? A mixed-methods analysis of Italian investment strategies," Environment and Planning C, , vol. 34(4), pages 656-675, June.
    • Handle: RePEc:sae:envirc:v:34:y:2016:i:4:p:656-675
    DOI: 10.1177/0263774X16628180
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    3. Riccardo Crescenzi & Simona Iammarino, 2017. "Global investments and regional development trajectories: the missing links," Regional Studies, Taylor & Francis Journals, vol. 51(1), pages 97-115, January.
    4. Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.
    5. Ascani, Andrea & Bettarelli, Luca & Resmini, Laura & Balland, Pierre-Alexandre, 2020. "Global networks, local specialisation and regional patterns of innovation," Research Policy, Elsevier, vol. 49(8).
    6. Jonathan Jones & Ilona Serwicka & Colin Wren, 2020. "Motives for foreign direct investment location in Europe and EU enlargement," Environment and Planning A, , vol. 52(8), pages 1681-1699, November.
    7. Antonello Zanfei & Andrea Coveri & Mario Pianta, 2019. "FDI Patterns and Global Value Chains in the Digital Economy," Working Papers 1903, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    8. Coveri, Andrea & Paglialunga, Elena & Zanfei, Antonello, 2024. "Global value chains and within-country inequality: The role of functional positioning," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 382-397.
    9. Witte, Caroline T. & Burger, Martijn J. & Pennings, Enrico, 2020. "When political instability devaluates home-host ties," Journal of World Business, Elsevier, vol. 55(4).

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