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The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choices
This paper investigates the role of geographical and temporary proximity in the location and co-location decisions of manufacturing activities by foreign multinational enterprises (MNEs). Empirical analysis shows that foreign MNEs co-locate their new manufacturing plants with their plants already operating in the same manufacturing activity, while geographical proximity exerts a much weaker role when the latter operates in services activities. This is especially true in the case of knowledge-intensive business services, where the travelling and meeting of professionals allows temporary proximity. Moreover, a spatial econometric extension of the analysis confirms a geographical decay effect for intra-firm co-location with activities located in contiguous provinces.
The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choices
This paper investigates the role of geographical and temporary proximity in the location and co-location decisions of manufacturing activities by foreign multinational enterprises (MNEs). Empirical analysis shows that foreign MNEs co-locate their new manufacturing plants with their plants already operating in the same manufacturing activity, while geographical proximity exerts a much weaker role when the latter operates in services activities. This is especially true in the case of knowledge-intensive business services, where the travelling and meeting of professionals allows temporary proximity. Moreover, a spatial econometric extension of the analysis confirms a geographical decay effect for intra-firm co-location with activities located in contiguous provinces.
The role of geographical and temporary proximity in MNEs’ location and intra-firm co-location choices
Lavoratori, Katiuscia (author) / Mariotti, Sergio (author) / Piscitello, Lucia (author)
Regional Studies ; 54 ; 1442-1456
2020-10-02
15 pages
Article (Journal)
Electronic Resource
Unknown
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