Working Papers

FDI, Global Value Chains, and Local Sourcing in Developing Countries

FDI, Global Value Chains, and Local Sourcing in Developing Countries

FDI, Global Value Chains, and Local Sourcing in Developing Countries

With Vito Amendolagine, Andrea Presbitero and Adnan Serie I published an IMF Working Paper on whether and how the participation and position in global value chains  of host countries is associated with local sourcing by foreign investors in 19 Sub-Saharan African countries and Vietnam.

Here you can download the WP

Italian Industrial Districts Today: Between Decline and Openness to Global Value Chains

Italian Industrial Districts Today: Between Decline and Openness to Global Value Chains

Italian Industrial Districts Today: Between Decline and Openness to Global Value Chains

With Elisa Giuliani, I have published a  CERTeT WP on Italian industrial districts (IDs). In this paper we use the available empirical evidence on these recent transformations, and elaborate a novel typology of Italian ID organizational models (i.e. lowroad IDs, locally rooted GVC-led IDs, and outward oriented GVC-led IDs).

Here you can download the working paper

Clusters in the Caribbean: Understanding their Characteristics, Defining Policies for their Development

Clusters in the Caribbean: Understanding their Characteristics, Defining Policies for their Development

Clusters in the Caribbean: Understanding their Characteristics, Defining Policies for their Development

With Elisa Giuliani, I have published a IADB Discussion Paper discussing clusters in the Caribbean. A desk review of 32 clusters distributed across the Caribbean identifying three groups of clusters are identified: rising, innovative, and sluggish.

The working paper is available here

Local innovation and global value chains in developing countries

Local innovation and global value chains in developing countries

UNU-MERIT Working Papers #2015-022

with Valentina De Marchi and Elisa Giuliani

This working paper is part of a collaborative research effort of UNIDO and UNU‐MERIT. It has been commissioned as a background paper for the UNIDO Industrial Development Report 2016. In this study we undertake a systematic review of the literature on GVCs in developing countries to investigate if and how innovation has been undertaken at the local level.

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The Location Strategies of Multinationals from Emerging Countries in the EU Regions

The Location Strategies of Multinationals from Emerging Countries in the EU Regions

UNU-MERIT Working Papers #2015-009

with Riccardo Crescenzi and Carlo Pietrobelli

This paper looks at the location choices of MNEs in the European Union (EU-25) regions and unveils that EMNEs follow distinctive location strategies. Their attraction into large regional markets is similar to AMNEs as well as their irresponsiveness to efficiency seeking motives. Conversely, the most knowledge-intensive investments respond mainly to  strategic assets and the agglomeration of foreign investments in the same business functions.

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Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe

Chinese and Indian Multinationals: A Firm-Level Analysis of their Investments in Europe

Papers in Innovation Studies #27 CIRCLE – Lund University

with Vito Amendolagine and Claudio Cozza

In this paper we undertake an empirical analysis  of Chinese and Indian FDIs in Europe to investigate their identity and characteristics and the association between these features and their international business strategies. We exploit a dataset at the level of the investing firms. In relation to mode of entry, we find that the greenfield is a more likely option for large-sized companies, and that weak propensity for innovation is associated with a low probability to enter through a merger or acquisition. A high propensity for innovation is related to asset-seeking FDI, while high profitability is needed to invest in the core EU countries.

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The impact of outward FDI on the performance of Chinese multinationals

The impact of outward FDI on the performance of Chinese multinationals

BOFIT Discussion Papers 24 • 2014

with Claudio Cozza and Marco Sanfilippo

Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets. The results provide robust evidence in support of the view that China’s OFDI had so far a positive impact on domestic activities in enhancing firms’ productivity and scales of operation.

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Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU inventors

Papers in Innovation Studies #25 CIRCLE – Lund University

with Elisa Giuliani and Arianna Martinelli

Firms from emerging countries such as Brazil, India, and China (BIC) are going global, and Europe is attracting around one-third of their direct outward investments. Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze BIC firms’ cross-border inventions with European Union (EU-27) actors, during the period 1990-2012. Our results suggest that cross-border inventions represent an opportunity for BIC firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions.

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Is access to credit a constraint for Latin America enterprises? An empirical analysis with firm-level data

MOFiR WP #101

With Andrea Presbitero

An intense process of deregulation and financial liberalization in Latin America has increased competitive pressures and led to bank restructuring and consolidation. This paper looks at firm access to credit in the region, focusing on the role of credit market structure. Using firm-level data from theWorld Bank Enterprise Survey, we find that access to bank credit is very heterogeneous. On average, smaller and less productive firms are less likely to apply for credit and more likely to be financially constrained.

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Chinese and Indian M&As in Europe: The relationship between motive and ownership choice

CIRCLE WP, 3, University of Lund, Lund. Forthcoming in The Routledge Companion to Merger and Acquisition; A. Risberg, D. King and O. Meglio (Eds); Routledge, London.

With L. Piscitello and V. Scalera

The present paper is about the ownership choices by Emerging Market Multinational Enterprises (EMNEs) when they invest in Europe through M&As, and the relationship with the main motivations underlying their international expansion. Namely, we claim that EMNEs prefer to acquire less control and keep the local partner when they invest for seeking knowledge. Additionally, EMNEs choose partial acquisitions in case of high dissimilarity in terms of culture, industry and knowledge base.
Our empirical analysis relies on a dataset of M&As undertaken by Chinese and Indian MNEs in high and medium-high tech sectors, in the period 2003-2011. We use content analysis of public announcements and company reports for classifying the main motivation of the acquisitions, and econometric analysis for testing our hypotheses. Our results confirm the expectations.

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An analysis of Chinese outward FDIs in Europe with firm-level data

CIRCLE WP, University of Lund, Lund. Forthcoming in China and the World Economy.

With A. Amighini, C. Cozza and M. Sanfilippo

The empirical literature on China’s outward foreign direct investment (OFDI) mainly relies on aggregate data from official statistics, whose international reliability is currently a matter of concern, not taking account some relevant features such as the industry breakdowns, ownership structures and modes of entry. A novel firm-level database – EMENDATA – compiled by matching data from several available sources, on various types of cross-border deals, and including information on group structure, enables new empirical analyses and provides new insights into the rapidly increasing presence of Chinese companies abroad. In this paper, exploring the potential of this database we offer an informative and comprehensive assessment of the geographical and specialization patterns of Chinese outward FDI into Europe and suggest new avenues for further research on this highly policy relevant issue.

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Proximity and scientific collaboration: Evidence for the global wine industry

Papers in Evolutionary Economic Geography, Utrecht University, Utrecht. Forthcoming in Tijdschrift voor economische en sociale geografie.

With L. Cassi and A. Morrison

International collaboration among researchers is a far from linear and straightforward process. Scientometric studies provide a good way of understanding why and how international research collaboration occurs and what are its costs and benefits. Our study investigates patterns of international scientific collaboration in a specific field: wine related research. We test a gravity model that accounts for geographical, cultural, commercial, technological, structural and institutional differences among a group of Old World (OW) and New World (NW) producers and consumers. Our findings confirm the problems imposed by geographical and technological distance on international research collaboration. Furthermore, it shows that similarity in trade patterns has a positive impact on international scientific collaboration. We find also that international research collaboration is more likely among peers, in other words, among wine producing countries that belong to the same group, e.g. OW producers or newcomers to the wine industry.

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