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Outward FDI and Local Employment Growth in Italy

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  • S. Federico
  • G.A. Minerva

Abstract

Using several data sources, we assess the impact of Italy's outward foreign direct investment (FDI) on local employment growth between 1996 and 2001 for 12 manufacturing industries and 103 administrative provinces. Our main result is that, controlling for the local industrial structure and area xed e ects, FDI is associated with faster local employment growth, relatively to the national industry average. We also nd that employment in small plants is not negatively in uenced by higher levels of FDI. Our ndings do not support therefore the idea that FDI is detrimental to local employment growth in the home country.

Suggested Citation

  • S. Federico & G.A. Minerva, 2006. "Outward FDI and Local Employment Growth in Italy," Working Papers 572, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:572
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    18. Youngho Kang & Unjung Whang, 2018. "To Whom Does Outward FDI Give Jobs?," Open Economies Review, Springer, vol. 29(3), pages 613-639, July.
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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