The aim of this paper is to investigate the impact of inward and outward FDI on Italian manufacturing and services firm survival. We carry out theoretically and empirically the analysis of firm survival distinguishing between foreign multinationals, domestic multinationals and domestic non multinational firms. The empirical analysis is based on survival functions as well as a Cox proportional hazard model, controlling for firm and industry specific covariates. The findings reveal that during the period 2004–2008 while manufacturing and service firms owned by foreign MNEs are more likely to exit the market than national firms, on the other hand domestic MNEs have a higher chance of survival. This result supports the idea that foreign MNEs are inherently footloose.
The Impact of FDI on Firm Survival in Italy
PITTIGLIO, Rosanna;
2010
Abstract
The aim of this paper is to investigate the impact of inward and outward FDI on Italian manufacturing and services firm survival. We carry out theoretically and empirically the analysis of firm survival distinguishing between foreign multinationals, domestic multinationals and domestic non multinational firms. The empirical analysis is based on survival functions as well as a Cox proportional hazard model, controlling for firm and industry specific covariates. The findings reveal that during the period 2004–2008 while manufacturing and service firms owned by foreign MNEs are more likely to exit the market than national firms, on the other hand domestic MNEs have a higher chance of survival. This result supports the idea that foreign MNEs are inherently footloose.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
