Heterogeneity and distance. some propositions on how differences across regions, firms and functions affect the role of distance in fdi location decisions

Author/s Davide Castellani, Giulio Giangaspero, Antonello Zanfei
Publishing Year 2014 Issue 2014/4
Language English Pages 24 P. 81-104 File size 87 KB
DOI 10.3280/POLI2014-004005
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The idea that distance may hinder cross-border economic activities has a long tradition in both international trade and international business studies. Increasingly, this literature has highlighted the need to consider distance as a multifaceted concept including both spatial and institutional features. In this paper we argue that the complexities of distance factors and their impact on FDIs can be best appreciated when considered across regions, across firms and across functions. We present some developments in extant literature that account for heterogeneity in each of these three directions, and draw some implications for the analysis of FDIs location decisions.

Keywords: FDIs, multinationals, distance, heterogeneity

Jel codes: F23, O33

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Davide Castellani, Giulio Giangaspero, Antonello Zanfei, Heterogeneity and distance. some propositions on how differences across regions, firms and functions affect the role of distance in fdi location decisions in "ECONOMIA E POLITICA INDUSTRIALE " 4/2014, pp 81-104, DOI: 10.3280/POLI2014-004005