文档介绍：Outward FDI and Local Employment Growth
in Italy
Stefano Federico and Gaetano Alfredo Minerva
Bank of Italy, Rome; University of Bologna
Abstract: Using several data sources, we assess the impact of Italy’s outward for-
eign 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 fixed effects, FDI is
associated with faster local employment growth, relatively to the national industry
average. We also find that employment in small plants is not negatively influenced
by higher levels of FDI. Our findings do not support therefore the idea that FDI is
detrimental to local employment growth in the home country. JEL no. C21, F21,
F23
Keywords: Foreign direct investment; agglomeration; employment growth
1 Introduction
As an increasing number of firms choose to move production abroad, the
debate on the impact of such strategies on domestic employment has greatly
intensified. Relocation, especially in low-wage countries, is often evoked in
the public opinion as a major determinant of job losses, at the expenses of
unskilled labour. This idea has received support among many politicians
in various countries, leading to the draft of measures aimed at imposing
Remark: We would like to thank for valuable suggestions an anonymous referee, io
Barba Navaretti, Piero Cipollone, Aldo Goia, Roberto Golinelli, Peter Nunnenkamp, Gian-
marco Ottaviano, participants to the 1st Italian Congress of Econometrics and Empir-
ical Economics at the University Ca’ Foscari in Venice, R Meeting on International
Economics and Development at the University of Urbino, the 2nd Euroframe Conference
in Vienna, the ECB/CEPR Labour Market Workshop at the European Central Bank in
Frankfurt-am-Main, and seminars in Novara and Castelló de la Plana. This paper has pre-
viously circulated under the title “Fear of Relocation? A