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Industrial districts, urban areas or both? The location behaviour of foreign and domestic firms in an Italian manufacturing region

Author

Listed:
  • Ilaria Mariotti

    (DAStU-Politecnico di Milano)

  • Mariachiara Barzotto

    (University of Bath)

  • Giancarlo Corò

    (Ca’ Foscari University of Venice)

  • Stefano Saloriani

    (DAStU-Politecnico di Milano)

Abstract

The present paper aims at exploring the location behaviour of manufacturing firms, according to their ownership: domestic firms (henceforth DOMs) and inward foreign direct investments (henceforth IFDIs). This issue is empirically addressed by using data on manufacturing IFDIs and on DOMs in Veneto (north-east Italy) from the Reprint, AIDA and ISTAT databases. Veneto is an industrial district region, specialized in the Made-in-Italy sectors, hosting a central metropolitan area (Padua) and attracting a high share of IFDIs. Geo-referenced mapping and econometric analysis (counterfactual) are developed to explore the location behaviour of the two groups of firms. In line with previous work, findings show that IFDIs are more likely to be located in areas close to the main urban centres, such as the metropolitan area of Padua, to exploit the advantages of complex environments and higher connectivity. However, they also tend to locate in district areas more often than their DOMs counterfactual, suggesting the objective of acquiring a system of specialized productive knowledge and skills developed within a district ecosystem, and hardly reproducible in other contexts.

Suggested Citation

  • Ilaria Mariotti & Mariachiara Barzotto & Giancarlo Corò & Stefano Saloriani, 2020. "Industrial districts, urban areas or both? The location behaviour of foreign and domestic firms in an Italian manufacturing region," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 523-546, June.
    • Handle: RePEc:spr:anresc:v:64:y:2020:i:3:d:10.1007_s00168-020-00990-8
    DOI: 10.1007/s00168-020-00990-8
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    1. Celetti, D., 2020. "Small Businesses in the Global Market: Evidence from the Fashion System of Vicenza Province (Italy)," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 6(2), pages 74-88.

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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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